With the end of the May transaction, the Shanghai Stock Exchange Index finally closed a small Yang line with a long upper shadow line, with a cumulative increase of 68 points in the whole month. Against the background of the changing international situation, investors generally suffer from gains and losses, and the stock market is struggling to move forward in many uncertainties. Entering this week, affected by the frequent adjustment of U.S. tariff policies, the stock market shocks intensified. The Shanghai Stock Exchange Index fell 15.96 points on Friday, closing at 3,347 points, while the performance of the Shenzhen Stock Exchange Index was weaker. However, the strong protection of the banking sector and the “two barrels of oil” in the Shanghai stock market has not caused the index to fall sharply, highlighting the determination and firmness of the protection force.
In recent years, China has achieved leapfrog development in the fields of high-tech and military, and its comprehensive national strength has been greatly improved. It has the strength to compete with the United States in many fields. This remarkable change is vividly reflected in international affairs. For example, the International Mediation Institute set up its headquarters in Hong Kong, China, which was almost unimaginable more than a decade ago, fully proving that China’s influence in the international arena is increasing day by day. And this strong national strength is the solid foundation for the Chinese national team to dare to protect the market firmly, reflecting the solid and strong support behind China’s financial market.
Looking back on the May stock market, although the road ahead is full of thorns, the overall trend is still on the rise. Looking forward to June, the possibility of an upward breakthrough in the stock market has greatly increased. Previously, in April and May, investors were worried about the trade war launched by the United States, but in June, the situation gradually became clear. The trade war launched by Trump faces many legal obstacles in China, and the presidential power is obviously restrained, which makes it difficult to substantially advance the trade war in the short term, and it is even more difficult to pose a major threat to China. In the face of U.S. trade pressure, China has always adhered to a firm position, fearless, and resolutely did not compromise. Judging from all the signs, the Sino-US trade war is likely to come to an end. Even if Trump may still struggle for face and other factors, he can no longer change the general trend. With the gradual enlightenment of the international situation, the impact of external uncertainty on the stock market has been greatly reduced, and the upward breakthrough of the stock market has a more favorable external environment.
From the technical level and market pattern, the Shanghai Stock Exchange Index is currently facing a key pressure level of 3,500 points. At this important node, the market needs to fully carry out shock warehouse washing to digest the early profit plate and the upper trap plate, and create conditions for subsequent breakthroughs. It is expected that the stock market will show a downward trend next week. At present and in the future, the stock market mainly presents a structural market. With the continuous growth of various institutional investors such as funds, high-performance stocks and stocks with low price-to-earnings ratios will highlight the investment value. At the policy level, the management and the protection force are more determined, and the policy side is bound to work closely together to create a good environment for the stock market to rise. Once the washing shock is over, the market is expected to launch a strong breakthrough upwards. In June, the stock market may set off a round of “red storm” and usher in a strong upward market. Its upward trend may be extremely spectacular and shock the market.
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