As anticipated, the market declined yesterday. Congratulations to the students who entered short positions between 2400 and 2383 for their profits.
Daily market trends are unpredictable. The drop yesterday spanned 2396 to 2369, which is 2700 points. Compared to the previous drop from 2432 to 2353, which was 7900 points.
Yesterday's decline was only a third of the previous drop. Due to lower trading volume at the end of July and the upcoming non-farm payroll data release this week, the market is essentially consolidating.
The decline stopped at 2369 yesterday, and today we see a rebound. Keep an eye on market trends. Currently, the market is tempting both long and short positions, with the overall price remaining within the range of boxes 1 and 2.
1. For now, watch if the upward correction breaks the upper trend line of the channel at 2397 and 2403.
2. If it breaks, it will open up another price space, leading to a bullish trend.
Conversely, if today's upward correction does not break the upper channel, specifically 2397 and 2403, watch for 2384 and 2376 below. Enter short positions with caution and manage your risk appropriately.
A reminder: July isn't over yet, and with the non-farm payroll data release imminent, the market is likely to continue its range-bound consolidation with frequent long and short orders. Students are advised to avoid entering the market without a clear trend to prevent unnecessary losses.
