The current situation should be similar to the market in March 2021, with a slight decline followed by a surge to 110,000 next month, then starting a major weekly correction. This way, everyone will think it will continue to surge, and the correction will trap more people who are looking to go long.

I mentioned on Monday that the extreme low point this week is around 99255, and if it breaks slightly below, it will only drop to 98800. The basic decline is also in line with expectations.

In the morning, many people will definitely be tempted to short, but shorting after a decline will inevitably lead to being stuck at a low level. If you want to short, you should take small positions at significant levels like 10.3, 10.5, 10.8, and 11 to hedge long positions. Generally, after holding for a few days, you can make a profit.

Essentially, there is not much negative news; Powell is merely speaking slightly hawkish, saying "there might only be two rate cuts next year." The specific number of rate cuts is not determined by him but by the inflation rate. The market has overinterpreted this. Additionally, Japan is not raising interest rates (as I mentioned a few days ago, it will be postponed until March next year), and the declines from the early morning will be corrected. After digesting for two days, everything will return to normal. Of course, the process of rising will be bumpy, so never go in with a heavy position; take profits in batches.