In the past three days, the trading enthusiasm of the exchange has cooled sharply, the trading volume has dropped sharply, and the market selling is strong, which all suggest that a violent storm is about to hit.
There are two main reasons why the market is showing such a trend:
First, market participants generally take a wait-and-see attitude and act cautiously;
Second, institutional investors may be withdrawing on a large scale to seek risk avoidance.
Due to the sharp decline in the activity of institutional investors, the market's trading volume has dropped sharply by about 70%, which further reflects the cautious and pessimistic market sentiment.
Perhaps institutional investors have caught some unfavorable news in advance, so they have reduced their purchases and even rushed to sell their assets in exchange for cash flow. In this context, we can foresee that the recent decline is just a prelude to the storm. The real heavy storm is still brewing, and its power is enough to scare institutional investors.
Therefore, we must be fully prepared to meet this unprecedented market turmoil. Both investors and market participants need to remain calm and respond rationally to cope with the upcoming market changes.