Stock Market Outlook: Market Adjustment Is Buying Opportunities

The main reason for the low opening of the market in early trading on Friday was the sharp decline in the external market, and the main force of all sides abandoned the strategy of direct upward breakthroughs, and finally opt for active callbacks.

The trend of the market is very quiet, and the intraday index is down. Even if there is a continuous volume, it will not exceed 5 minutes. I haven't seen such a disk in a long time.

Historical experience tells us that

The disk is particularly quiet. When the index position is at an important juncture, it is often necessary to choose the direction of short and medium line breakthroughs.

Since the Shanghai Composite Index 2850 points, the market has seen a single day drop or several consecutive days.

The adjustment, the author's view is that the market will rise, that is, because the market has not completed the form of rise, so far, the market has not yet completed the rise of the form, therefore, do not think that the short-term return of the market is too pessimistic.

On the operation, it is recommended to continue.

From the general quality of the GEM stocks to the motherboard or smaller shares to adjust, patiently waiting for these stocks upward force.

The market will attack and create a new high in the stock market. Therefore, the short-term adjustment is buying opportunity.

Technically, the Shanghai Composite Index fell back at 3580, and the index directly explored the 5 day moving average.

At present, the 5 day moving average has certain support for the index.

But the closing point on Friday was 3535 points below the short-term technical level, which added variables to the short-term trend of the broader market.

If the market is above 3535 points, the index will have the ability to make direct upward force, while it is less than 3535. The upward force of the market needs a little time to gather energy, and it does not exclude the technical position of the 3480 point line.

However, no matter how the market goes, it will eventually run upwards.

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This week, many people in the market are puzzled. Why did the trend of gem obviously break up in November 27th, but the index did not accelerate the decline? Instead, it was a few days after the shock and rebound. Where did the market go in the future? I think the 2 wave callback has begun. The callback is a good opportunity to re absorb the GEM stocks.

First look at the annual line, because now is December, the market is about to cross the year, the trend of the annual line level should also be included in the observation.

The shareholding line has turned red for the first time in nearly 6 years, which is a good example of the growth of the gem in the annual line, and 2016 will continue to be strong or at least volatile.

Let's look at the monthly line. The monthly watershed is 2605. It is effective to stand firm 2605, and there is a chance to attack 4000 again.

At present, the support of the monthly line is 2507 and 2384, which is the position of falling down and low absorption. If there is a chance to hit 2350 in a short time, boldly fill the warehouse.

Let's take a look at the weekly line. We notice that the high point of 2915 is the high point that appeared in the twelfth week starting from 1779. We observed that the adjustment of the previous 4037 to 1779 was just running for 12 weeks, so the 2915 high point appeared at important time points, so the adjustment had continuity.

The 4037-1779 adjustment is the 3 wave structure: 4037 adjustment in June, 2304 adjustment in July, adjustment for 4 weeks, A wave adjustment, 2304 rebounding in July to 3014 rebounding in July, B wave rebound, 3014 adjustment in September to September in September, C adjustment in 6 weeks, C wave fall and decline, we notice a sub wave adjustment, minimum adjustment is also a week or week of discrimination, and from adjustment to current adjustment, it is only a week, adjustment space is far from enough, adjustment time is also very inconsistent from wave shape, here should at least adjust week around, then from time point of view, at least adjust week around.

Technically, it has been on the 5 week line for two consecutive weeks. At present, the support for the short term is 10 week line 2594. Later, if it loses 2594, it will further operate near the 2400 lifeline of the weekly line and near the 60 week line.

At present, the weekly bear bull line is located at 2547, and continues to pay close attention to whether the weekly closing is above 2547. This is an important basis for judging the strength of the market.

Looking at the daily line, since the sharp fall of November 27th, breaking the September 15th low of 1794 and the November 3rd low of 2407, the rise of the channel, from the form of view is obvious adjustment form.

Short term concern about the support of 2677, the 2677 before the failure of the existence of the opportunity to attack, the strong resistance to rebound is the lifeline of the daily line 2745, the observation is 2745 or 2745, or if the effective breakthrough 2745, the market still has the ability to attack the formation of multiple peaks near 2900.

It will continue to pay attention to the support of the previous low 2507, once it is lost, it will further operate near the line 2400.

Comprehensive conclusion: 1) the market has entered the 2 wave callback, is expected to be adjusted at least 3 weeks or so; 2) the gem will lead the market ahead of the bull market. The retreat is the opportunity to pick up the bargains again, the support is 2507 and 2384, this is the position to fall back low, if there is a chance to hit 2350, 3) continue to close the week's close on 2547, which is an important basis to judge the strength of the market.