Hexun Investment Advisor Wang Haiyang: Key Period for Market Direction Selection, Is the Repair Rally About to Begin?

On March 24th, Wang Haiyang from Hexun Investment Advisory stated that the market opened high and fluctuated today. Will the market make new lows again? Has the correction ended? What will the market do tomorrow? Let’s analyze in detail. I explained clearly last night that if overseas markets rise, the market is likely to open higher today. However, a high open generally releases the rebound momentum for the day, and after a mid-term decline, the opening attack power is usually not strong. So, the market’s trend for the entire day may stay around the opening price, possibly forming a star line, serving as a buffer. In the short term, how the market opens and moves tomorrow could attract a large number of bottom-fishing investors.

To determine if it’s the bottom, we need to see if large funds are clearly entering the market. Although there was some rally in the afternoon today, overall, the market was not much different from the opening price. After a decline, the opening usually lacks aggressiveness, but this time, the sharp drop brought the index directly to the 2800-point support, which is the bottom of the range—strong support. Based on today’s trend, it would be best if the market opens lower tomorrow, which could lead to a rebound; if it opens higher, it might test the bottom because of the long lower shadow, and we need to confirm whether the 3800 level is not broken. Only if it remains unbroken can it be considered truly stable. If the market opens lower and rebounds tomorrow, further confirmation is needed later, such as a volume decline and a new low with decreasing volume signals.

Today, the trading volume and turnover of the Shanghai Composite Index were significantly lower than yesterday. The market’s next move depends on whether large institutional funds will step in to buy the dip. Of course, a lower open tomorrow would be better; if it opens higher, the rebound momentum might weaken gradually. After this correction, many stocks caught in losses don’t need to be recklessly traded; just wait for gradual recovery. In a bull market, slow rises and quick corrections are common. Every major decline or violent shakeout, in hindsight, might be a new starting point. Currently, the index’s trend is quite normal—opening high and fluctuating, not yet at the stage where major players are exerting force. Today mainly served to buffer the panic atmosphere. If the market opens lower and then moves higher with volume, indicating clear bottom-fishing funds, the rebound can officially begin.

Additionally, the gap on the ChiNext Board has been filled, but the correction is not yet complete. Although the gap is filled, a lower shadow remains, and since this wave didn’t fall much, the lower shadow might be broken. Therefore, the ChiNext Board still remains worrisome. The STAR Market rebounded relatively strongly today, but it also has a long lower shadow. If tomorrow can open lower and then move higher, it would be a sign of a bottoming pattern, possibly initiating a new wave of recovery.

(Author: Zhao Yanping HF094)

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