At the opening today, the stock market performed a "roller coaster" for everyone. The major stock indexes opened with astonishing jumps. The Shanghai Main Board rose by more than 10% and hit the daily limit at the opening; the Shenzhen Component Index and the ChiNext Index respectively It was a strong start of 12.67% and 18.84. The market enthusiasm was unprecedentedly high, and more than a thousand stocks closed their daily limits. Then, after opening higher, it randomly encountered a wave of selling, and the gains of the three major stock indexes narrowed significantly in the afternoon. The Shanghai and Shenzhen stock markets finally closed at 4.81% and 8.25 respectively, and the growth rate of the ChiNext narrowed to 14.26%. This trend directly taught many newcomers to the stock market a heavy lesson. They thought that wealth was about to arrive, but in fact, it was financial ruin.
At the same time, the "backstab" of Hong Kong stocks has become an important factor in triggering this wave of decline. Behind it is the sharp drop in Hong Kong stocks and the FTSE A50 Index Futures. The Hang Seng Technology Index fell by more than 14% during the session. The state-owned enterprise index suffered a heavy blow, and real estate and securities stocks were all defeated. The reason is the change in the expectations of the Federal Reserve's monetary policy, the strong rebound of the US dollar and the surge in US bond yields, especially the 10-year Treasury yield breaking through the 4% mark, which triggered a chain reaction in the global capital market. In addition, the sudden rebound of the yen led to a collective counterattack of non-US dollar currencies, exacerbating the Asian regional market.
The crypto market was not immune to the situation, and showed violent and wide fluctuations. Bitcoin retreated after testing the high of 64,500, and held up near the support level of 62,000. Ethereum also hovered above $2,400. Although several attempts to break through failed, it did not effectively break through the short-term key price. For short-term trading, pay attention to the resistance level of 64,500. If it stands firmly, you can go long appropriately.
