Do you have this feeling — that the current major market indices are increasingly difficult to sustain their upward momentum, as if teetering on the edge of a cliff? Behind this actually lies a clear signal of a pullback. Interestingly, a phase of adjustment can instead lay a solid foundation for the subsequent market trend.

Today, the three major financial sectors—insurance, securities, and banking—collectively suppressed the market. This is not a coincidence but a direct reflection of capital intentionally controlling the rise of the indices.

Observing the current market, the continuous upward trend of the indices has already accumulated to a relatively high level. What is the essence of high-level consolidation? Simply put, it is a process of cooling overheated market sentiment, cleaning out floating positions, and digesting profit-taking. At the same time, this process also opens the door for missed-out funds, creating entry opportunities. Only after completing this round of consolidation can the spring rally be stable and sustainable.

**In the next few days, a correction is inevitable, based on four clear signals released by the market:**

**1. The intention to control the market is very obvious.** Yesterday, CITIC Securities placed large sell orders to suppress, and today the entire financial sector coordinated to pressure the index. This coordinated suppression is not random; it reflects deliberate choices by institutional funds.

**2. Market sentiment has shifted.** Yesterday, there was still defensive differentiation (indices falling, individual stocks broadly declining), but today the trend shifted to pushing the index while speculating on themes. The rise and fall of individual stocks are becoming more extreme, indicating that short-term market sentiment volatility will further intensify.

**3. Defensive sectors are showing unusual movements.** In the afternoon, the index struggled to advance, but defensive sectors like food & beverages and commercial retail instead rose against the trend. Such movements in consumer stocks often signal rising risk aversion among funds, so caution is advised.

**4. Overcrowded themes.** Today, sectors like commercial aerospace, controlled nuclear fusion, AI applications, domestic substitution, and robotics exploded simultaneously, creating intra-day resonance. But market normalcy is that after a peak, decline follows. The main tech themes are already showing signs of a pullback, with risks of a sharp correction.

**The technology sector remains the core theme of the spring market**, and this has not changed. Today’s broad rally confirms that this main line remains strong. However, a key issue is that most of the current tech stocks have already moved out of the low-price zone. In the short term, they need to undergo divergence adjustments and chip turnover to rebuild upward momentum. This also explains why the consumer sector showed unusual activity in the afternoon — some funds took profits from high-position tech stocks and shifted to low-priced, oversold consumer stocks for risk hedging.

Tomorrow’s key risk is the divergence among sub-themes within the tech sector. Especially those tech stocks that have experienced significant trending gains since the end of the year are likely to see increased short-term volatility. According to normal logic, once the upward momentum of the tech mainline diminishes, funds will temporarily divert. Some funds will hide in consumer and high-dividend sectors for risk aversion, some will test the rebound potential of cyclicals, and others will simply cash out, waiting for a low-entry point after the tech sector pulls back.

The essence of the market’s bulls and bears game is, in fact, a switch in capital rhythm. Bearish funds are not truly bearish but rely on early-position advantages to push prices higher for profit-taking, then re-enter after a correction. Bullish funds do not need to chase the rally immediately; they can patiently wait for low-entry opportunities after the mainline divergence.

**Tomorrow, the performance of the tech sector will become a key anchor for market sentiment.** Caution is necessary. Under the backdrop of heavy financial sector suppression, individual stocks can still maintain a pattern of more gains than losses mainly because of the sentiment driven by the tech mainline. But if tomorrow the tech sector shows widespread divergence, the profit-making effect of individual stocks may shrink. Yesterday, small-cap stocks led the decline; today, they led the rally. Such rapid style switching makes tomorrow the real decision point. Plus, the tech mainline is likely to undergo a short-term correction, and risk aversion among funds may further intensify.

**Reaffirmation of core view:** From a trend perspective, the target of 4200 points for the major indices remains unchanged. But short-term trading must be well-paced. Trend-based positions can continue to be held, but the key is to remember one thing — whether bullish or bearish, having positions in hand allows one to adapt to market shifts and act accordingly.