Market Overview - The U.S. stock market showed mixed results with the Dow Jones up by 0.44%, while the Nasdaq and S&P 500 fell by 0.76% and 0.16% respectively. The Nasdaq China Golden Dragon Index dropped by 1.95% [1] - In the A-share market, major indices experienced declines, with the Shanghai Composite Index down by 0.62%, the Shenzhen Component down by 2.54%, and the ChiNext Index down by 4.26%. Over 3,500 stocks fell, indicating a bearish sentiment [1] - The trading volume in the A-share market reached 2.58 trillion yuan, an increase of 221.5 billion yuan compared to the previous trading day [4] Sector Performance - The diamond cultivation sector saw significant inflows due to new export controls on synthetic diamond products announced by the Ministry of Commerce and the General Administration of Customs, highlighting the material's importance in semiconductor applications [1] - High dividend sectors such as banking, insurance, and coal mining showed positive performance, while semiconductor equipment and related sectors faced significant outflows [5][8] Investment Strategy - The market is expected to experience fluctuations, with a recommendation to focus on undervalued high-dividend assets and sectors benefiting from domestic consumption recovery [6][9] - The recent market adjustments are viewed as technical corrections rather than a shift in the overall bullish trend, with a focus on maintaining positions above 3,800 points in the Shanghai Composite Index [7] - Investors are advised to reduce positions gradually during any rebounds to manage risk effectively [7] Technical Analysis - The Shanghai Composite Index is currently in a strong oscillating pattern, having tested the 20-day moving average support, while the ChiNext Index has shown weakness, failing to break above its 20-day moving average [11]