Market Overview - The A-share market saw all three major indices rise today, with the Shanghai Composite Index up 0.22%, Shenzhen Component Index up 0.67%, and ChiNext Index up 0.55% [1] - The total trading volume was 21,425 billion yuan, a decrease of 2,069 billion yuan from the previous day, with over 2,100 stocks in the green [1] - Key sectors that performed well included precious metals, consumer electronics, semiconductors, and liquid-cooled servers, while sectors like film and television, tourism and hotels, paper, energy metals, liquor, and pesticides underperformed [1] Market Sentiment - Following the Federal Reserve's interest rate cut last Thursday, the market briefly reached a new high of 3,899.96 points, just shy of the 3,900-point mark, but faced a sharp decline due to weakness in the financial sector [1] - The market has shown signs of temporary stabilization over the past two days, despite the reduced trading volume [1] Trading Volume Analysis - The core observation indicator for market momentum is the trading volume, which is essential for sustaining a bull market [3] - Continuous high trading volume indicates strong market participation and bullish sentiment, while declining volume suggests a lack of interest and potential downward pressure [3] Reasons for Low Trading Volume - The "pre-holiday effect" is influencing market activity, as investors tend to reduce holdings before holidays to avoid systemic risks, leading to decreased trading volume [5] - There is a lack of new major news catalysts in the short term, which has contributed to the market's inability to rally [6] - Technical indicators suggest a potential top formation in the market, which may further dampen buying interest and reinforce a cautious sentiment among investors [7] Market Outlook - The market is expected to remain in a consolidation phase before the National Day holiday, with limited upward movement anticipated [9] - Investors are advised to lower positions and wait for clearer signals before increasing exposure, while those looking to trade can consider buying near the lower end of the trading range and selling near the upper end [10] - Long-term bullish sentiment remains intact, with significant policy signals expected from the upcoming 20th Central Committee meeting in October, which could provide new direction for the market [14]