Today, the A-shares market continues to show a differentiated pattern. The Shanghai Composite Index fluctuated slightly, with individual stocks rising and falling unevenly, and there is a risk of a sharp decline in the afternoon. Trading volume across both markets slightly contracted, with an estimated total daily turnover exceeding 2.5 trillion yuan. The technical pattern of high-volume sideways movement at high levels suggests a higher probability of correction.

Overseas markets generally weakened. The three major US stock indices declined slightly last night, with the China concept stock index falling by 1.58%. After the Asia-Pacific markets opened, most declined while some rose; the Nikkei index fell by 0.58%, while the Korean stock market rose against the trend by 1.1%. The Hong Kong stocks performed the weakest, with the Hang Seng Index dropping by 1.4% and the Hang Seng Tech Index falling by 1.2%.

The weightage sectors are all under pressure. Major large-cap stocks in the market declined collectively, with the securities sector down by 2.48%, bank stocks down by 1.05%, and dividend-paying stocks and central state-owned enterprises also experiencing adjustments. Once strong sectors like rare earths, non-ferrous metals, and chemicals saw significant declines, indicating a decrease in market risk appetite.

However, high-tech sectors performed remarkably well. Leading domestic GPU and chip-related stocks surged significantly, with the chip sector overall rising by 1.49%. The commercial aerospace concept increased by 2.4%, and domestic software stocks collectively strengthened sharply. The leading superhard materials sector rebounded strongly after a correction, with further upside potential.

From a technical perspective, the Shanghai Composite Index recorded fourteen consecutive days of gains, but the risk of chasing high at this level is beginning to emerge. Investors with heavier positions might consider reducing their holdings on rallies, as there is no market that only goes up without correction. However, from a mid-to-long-term perspective, the Shanghai Composite Index still has considerable room for growth, and a steadfast holding strategy should not be changed due to short-term adjustments.