Good news is here, how to view the next steps?

Market outlook: The weekend news is relatively positive, with a moderate easing of the securities capital space and leverage limits, combined with a major economic meeting next week, and the expectation of interest rate cuts in December, so the operations in December should not be worse than in November, with certain market expectations.

On a weekly basis, the 5-week moving average will still show a downward pressure next week, while the 20-week moving average is trending upward. From a weekly perspective, it is also in a sensitive turning point window, and the weekly level can be observed around the gains and losses of the moving averages.

Looking at the daily chart, the expectation of the 10-day moving average turning point that was suggested last week indicates that if the 10-day moving average can be held, there is a condition to fill the gap upward. Overall, it still aligns with the expected trend. On Friday, driven by large financial securities/insurance, the bulls began to exert strength to stand above the 5-day moving average, so the view remains unchanged, and it is likely to challenge the gap.

The performance of the Shenzhen Composite Index/ChiNext is basically synchronized. Taking ChiNext as an example, the focus for next week is to pay attention to the upward strength and whether it can break through and stabilize above the upper track of the central axis. Comparing the strength of the two segments before and after, if the strength increases, the rebound will continue upward; if the strength is weaker than the previous segment, then pay attention to the subsequent pullback to the central axis.

How will it go today?