Today the A-shares touched 3909 points. Regardless of whether you are in a Short Position or Full Position, you need to sort out your logic before the market opens on Tuesday.

From the market perspective, this rebound is not false. The index is firmly standing above the 5-day line, and the 5-day, 10-day, and 60-day moving averages have begun to converge, which technically signals a solid bottom. Interestingly, the details in the intraday chart—the yellow line representing small-cap stocks has been mostly above the white line today, indicating that the activity level of individual stocks is actually stronger than the index performance. Since the sharp drop on November 21, the market has clearly stabilized in recent days, and the next target should be the 20-day moving average, with upper resistance around 3950.

The data level can explain the issue better. The closing statistics show that 3,160 stocks rose while 2,090 fell. Although the index did not rise sharply, the rise and fall structure has already dominated. The key point is the trading volume—today it has released over 280 billion more than the same period yesterday, and the signal of increased volume at a low position is very clear; the main funds have already started to take action. Those who have traded contracts know that once the volume increases, the market often accelerates, and there should be more structural opportunities ahead.

Today, the consumer sector is leading the gains in the market. The consumer electronics line has been continuously rising from a low point, becoming the main line during this repair period. What’s good about this sector is that it has both defensive consumption attributes and a bit of explosive power from technology, which can help heal the wounds left by the previous sharp decline. However, once the market environment warms up, the main line is likely to shift to the technology sector. Another noteworthy phenomenon is that the concentration of sectors formed by everyone banding together during the previous weakness usually collapses when the market strengthens, and funds will flow back to the core main line.

At this position, the adjustment should be nearing its end. The impact of the previous sharp decline has been basically digested through the fluctuations of the past few days, and both the index and individual stocks are starting to rise. No matter the pace going forward, the direction towards the 3950 resistance level is clear. There may be short-term fluctuations such as spikes followed by pullbacks, but the trend of resuming the upward movement is the prevailing trend. Now is the window period for low-position layout; by grasping the rhythm of sector rotation and selecting the right targets, one can hold steady.