Only after experiencing large market fluctuations can the myth of getting rich suddenly appear. I think the most contrasting situation is the 619 incident, not the 3121 incident. Both of them experienced a correction period after a big rise. In 2021, the market experienced a three-month correction period from April to June, while this correction lasted from March to August, and has experienced a five-month adjustment period.
Whether it is 619 or 3121, they have pulled back to the long-term trend line of the daily line and then began to adjust sideways. This adjustment requires a positive line to deter the shorts and give confidence to the bulls to achieve market balance.
Considering the current market conditions, the possibility of a direct V-shaped reversal is small. As Buffett said, "cash is king", we need to be cautious, observe and wait for a while. Therefore, investors holding cash should keep a part of the funds as a backup.
Although the market is currently in a period of adjustment, we still have confidence in the future market trend. The key moment of the US election has not yet arrived, and the recession is still in the expected stage, and the actual development needs further observation. In terms of time, this adjustment period has been close to four months, which is longer than the adjustment period in May 2021. If the bull market continues, it is likely to have reached the bottom area now. Even if it follows the bear market script, it usually bottoms out after 6 to 7 months, so the latest rebound may occur in October or November.