Hexun Investment Advisor Li Guanqin: Testing the Bottom and Rebounding, with Three Major Hidden Risks

NightAirdropper · 2026-03-18T02:07:08+00:00

Today, major indices tested the lows and then rebounded, but there are three major risks: First, the volume of late-day rallies is decreasing, so attention should be paid to incremental capital inflows; second, sector rotation is chaotic, indicating unstable market sentiment; third, if key psychological resistance levels are not broken, caution is advised when seizing pullback opportunities. It is recommended to seek exit strategies during upward movements.

NightAirdropper

2026-03-18 02:07:08

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Today, major indices formed a bottoming rebound, but there are three major risks associated with this rebound.

Xunhua Investment Advisor Li Guanqin stated that first, we warned everyone during this morning’s trading session, especially during the intraday, that the indices were hitting a key support level and would likely experience an intraday rebound. Sure enough, by the end of the day, the major indices had risen. However, the first hidden risk here is that the rally today, which was driven by high volume during the morning decline, was accompanied by decreasing volume during the actual rebound in the late trading session. Therefore, the first point to watch tomorrow is whether increasing capital can enter during the bottoming rebound in a weak market, because for a sustained or short-term counterattack, the influx of new funds may be more important than the price movement itself.

The second point concerns today’s sectors. I mentioned in the morning that sectors worth paying attention to include the STAR Market 50, which can be observed more closely and opportunities can be found during the trading day. Today, as technology stocks rose, we also saw consumer stocks moving, making the entire sector landscape quite chaotic. This chaos indicates that sector rotation is happening with decreasing volume, and the market is mainly driven by rotation.

The third point is that when indices bottom out and rebound but do not break through key psychological levels, how can we accurately grasp the market rhythm this week? An important perspective is that this week is characterized by a “first decline, then rise” pattern. During this process, we should seize opportunities during pullbacks or when market sentiment hits a low point. However, during the upward movement, as long as the rally is characterized by decreasing volume and there is no rotation driven by main themes, it is advisable for everyone to look for an exit during the rise.

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