Monday Morning Jing Yi's Market Analysis

Laba Festival blessings, everyone. After Laba, it's the New Year. Remember to enjoy a bowl of Laba porridge.

After waking up, the big pancake plunged deep into the night. Last week's long-term target of 868 has been reached precisely, hitting the mark. The weekend rebound pattern failed again, mainly due to heavy fundamental gloom. The bearish factors are densely covering the market: the probability of MZF suspension on January 31st surged from 20% to 85%, with institutions heavily betting, igniting risk aversion sentiment; the market is pessimistic about the FOMC rate cut expectations, which are likely already priced in, turning rate cuts into an unexpected positive; US consumer confidence data on the 27th may weaken again, further boosting safe-haven demand. Be especially cautious of the yellow-haired trader waving the tariff stick prematurely, which could intensify market volatility.

The daily chart is teetering, and an extreme short-term trend may be emerging. Previously, it was predicted that the mid-term would need to test the 80,000 level. Jing Yi provided daily ideas last week: rebound then short, with the short-sellers taking off directly—either a "straight drop" or a "rebound then drop" scenario.

Market Strategy Suggestions:
Big pancake: Short near 868-875, target 860-850, long-term target 80,000 level.

Second pancake: Short near 2830-2860, target 2800-2750, long-term target 2600 level.