Market Sentiment - The recent drop in the market has caused a loss of confidence among investors, particularly around the 3400-point level, which has proven to be a significant resistance point [1][7] - Despite the short-term challenges, there is an expectation that the market will eventually break through this resistance, with the second half of the year seen as a potential turning point [1][9] Economic Policy Impact - The National Development and Reform Commission (NDRC) reported that the subsidy funds for the "old-for-new" consumption policy have reached about 50% of the annual target, indicating satisfactory progress [3][5] - The implementation of this policy has significantly boosted consumer spending, as evidenced by the fastest year-on-year growth in retail sales in May, suggesting a clear recovery in consumption [5][8] Market Dynamics - The recent market adjustment is viewed as a release of emotional pressure rather than a fundamental shift, with economic data indicating steady improvement and resilience against external uncertainties [8][9] - The focus should be on the performance of the ChiNext and CSI 2000 indices, which are seen as more indicative of market health than the overall index, as they have entered an oversold phase and are due for a rebound [9] Short-term Outlook - The market is expected to experience limited downside in the short term, with a potential for a small rebound as indicators suggest oversold conditions [7][8] - Investors are advised to remain cautious and patient, monitoring key levels such as 3369 points for signs of recovery before making significant moves [8][9]