Core Viewpoint - The market is experiencing significant structural differentiation, with a notable decline in technology growth sectors while defensive sectors are performing well, indicating a shift in investor sentiment and strategy [4][8]. Market Performance - The index has recorded one of its largest single-day declines, with a clear technical breakdown and substantial short-term adjustment pressure [4]. - Out of 2772 stocks, there is a notable disparity with more stocks rising than falling, reflecting a "pressure on the index but more stocks up than down" characteristic [4]. - The overall trading volume in the two markets has decreased by 5.19%, indicating a cooling of market trading sentiment despite remaining at high levels for the year [6]. Capital Flow - There is a net outflow of institutional funds, with a clear shift from overvalued technology growth sectors to undervalued or defensive sectors such as electric grid equipment and cement materials [8]. - Retail investors are showing mixed signals, with a net inflow of 934.66 million, but some individual stocks are experiencing a declining trend in financing balance [7][8]. Investor Sentiment - The sentiment among retail investors is cautious, with a significant percentage (62.40%) expecting a market rise in the next trading day, while 37.60% anticipate a decline [16]. - The current positioning shows 38.39% of investors are increasing their holdings, while 15.27% are reducing their positions, indicating a cautious approach to market movements [14].