Core Viewpoint - The current A-share market is experiencing a significant adjustment due to high crowding in small-cap stocks, leading to a breakdown of the "barbell strategy" among investors [2][5][14]. Market Sentiment - Recent market sentiment has turned negative, with a sharp decline observed on Friday, causing anxiety among investors [2]. - The lack of catalysts since May has contributed to the current market conditions, with the market's upward momentum being limited [6][7]. Historical Context - Historically, small-cap indices have experienced significant pullbacks, with the frequency of these pullbacks increasing from once a year to multiple times a year since 2022 [3][4]. - The volatility in the market has been exacerbated by quantitative funds outperforming subjective funds, leading to increased fluctuations [4]. External Factors - The current geopolitical climate, particularly the uncertainty surrounding U.S.-China negotiations, is causing unease in the market [8][11]. - Despite some positive economic data, structural issues remain, particularly in consumer spending, which is heavily reliant on subsidies [9][10]. Market Dynamics - The A-share market is currently in a typical oscillation phase, with resistance at 3400 points and support from policy measures and liquidity [13]. - The market is expected to remain in this oscillation until a significant catalyst emerges [18]. Potential Catalysts - Three potential catalysts could lead to a market breakthrough: 1. Positive developments in U.S.-China negotiations, such as the cancellation of fentanyl tariffs [15]. 2. Major technological advancements that enhance productivity across domestic industries [16]. 3. Unexpected stimulus policies in real estate, consumption, social security, and finance to boost domestic demand [17]. Investment Strategy - The focus remains on technology as the main investment theme, with current adjustments in the tech sector presenting attractive value opportunities [20][21].