Signs of a market rebound can usually be observed through the following aspects:
1. Increased trading volume
When the market approaches a low point, if trading volume significantly expands, it may indicate that funds are beginning to enter the market, showing a recovery of market confidence.
2. Index stabilization
Major stock indices or market average prices show signs of stabilization, possibly accompanied by several days of slight increases.
3. Sector rotation
Leading sectors or industries emerge, such as technology, new energy, or consumer sectors beginning to become active, driving overall market sentiment.
4. Improved sentiment
Investor sentiment shifts from pessimism to optimism, with a decline in the fear index (such as VIX) or a narrowing of market risk premiums.
5. Technical analysis signals
Breaking through important technical resistance levels (such as moving averages) or forming bullish technical patterns (such as double bottoms or head and shoulders bottoms).
6. Policy support
The government or central bank implements easing policies, such as interest rate cuts, reserve requirement ratio reductions, or economic stimulus measures, which typically boost market confidence.
7. Fund inflow
Domestic and foreign funds are flowing back into the stock market, especially with an increase in northbound funds (targeting the A-share market) or net subscriptions of ETFs.