Liang Jian: The Shanghai And Shenzhen Two Cities Have A Net Outflow Of Funds.

A few days ago, the elephant was dancing alone.

Rising, I always lack identity.

So these days I have been holding up the pressure of rising market and insisting on short term bearish.

Today, when the market pulled up a new high in the short term, it failed to make further efforts and began a slow adjustment.

This provides evidence for our judgement on short term bearish.

Deadline for draft

Out of a reverse hammer line, the inverted hammer line at the relative high level is a clear signal for the market to adjust soon.

The shape of the arc top of the deep component is almost formed.

At the same time, the capital of Shanghai and Shenzhen two cities showed a net outflow today.

Judging from the weekly K line, the Shanghai stock index has been on the red for 4 consecutive weeks. This marks the longest time since this week.

This certainly confirms the long term trend in the market, but the market is at a relatively high level in the year after its continuous rise. It is bound to have its own adjustment demand. Meanwhile, next week is the fifth week after 4 consecutive weeks of rise. As an important figure in the Fibonacci series, the probability of every 5 turns is relatively large.

Considering the above factors, the market may start next week.

Adjustment.

Where is the adjustment target? From the EMA system, the 251 day line is still slowing down. Next week it will almost reach 3065 - 3070, which is also the position of the adjustment platform in the middle of October (before the break of the year). At the same time, according to the operation trend of the 60 day line, the 60 day line will also form a golden fork in this position and the 251 day line, so this position should form a strong support.

In addition, if the market is adjusted from the closing position today (or in a short period of time to pull up again to adjust), fell to 3065 - 3070, then the drop can reach more than 50 points, or about 1.5% (most of the week this week, the price of the K-line is around 1.5%), should be able to achieve the purpose of washing dishes.

Here, I would like to explain that my original view is that the adjustment should fall short of the annual line, but the annual line is still slowing down. That is to say, the corresponding index of the annual line is moving downward.

After all, in October 31st, the index set a new high after the annual line was cut down. Therefore, the support level of adjustment should be raised now. We can take the annual line as the supporting position temporarily.