In the early morning market, while most people were asleep, it hit the 4-hour level resistance and after a false breakout, it showed slight accelerated upward movement. Looking back, this rebound is essentially not surprising. The previous week, the market experienced consecutive sharp declines, with multiple cycles entering an oversold zone, and some cycles showing obvious divergence. With the resonance of multiple cycles yesterday, a technical correction was successfully launched.

However, it is important to clarify that the current rise still belongs to the repair within a downtrend, rather than a trend reversal. The market is merely recovering temporarily from extremely pessimistic sentiment, and the large-scale bearish structure has not fundamentally changed due to these few bullish candles.

In terms of rhythm, this week's weekly line has just started. If it can continue to repair upwards, then the market is more likely to follow a path of "first forming a weekly upper shadow, and then returning to a downtrend." For bears, this type of repair is actually a more ideal opportunity, because only with a rebound forming sufficient space, subsequent high-position shorts will have a better risk-reward ratio.

The biggest feature of the current market is still extremely high volatility. Whether from news disturbances or pinbar events caused by insufficient liquidity, short-term trends are filled with uncertainty. Therefore, in trading, it is more suitable to control positions and relax stop-loss spaces, rather than heavily betting on short-term directions.

Overall, the general direction still leans bearish, and shorting at high positions remains the main logic of the current market; while buying at low positions is more about participating in the short-term repair process. The two need to be clearly distinguished in terms of level and logic.
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This article was originally published by 【Huiying Community】 and represents personal views only. Due to a certain delay in information transmission, the content is for reference only and does not constitute any investment advice. Please make rational judgments and operate cautiously.
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