Core Viewpoint - The market is experiencing a significant reduction in trading volume, indicating a lack of conviction among investors, with a divergence between those holding cash and those holding stocks [1] Group 1: Market Dynamics - The current trading volume is estimated to be smaller than yesterday, with a trend of decreasing volume firmly established [1] - The market's temperature is ultimately determined by buying activity, and as the number of buyers decreases, the balance will inevitably tilt [1] - The average stock price index resembles a head-and-shoulders pattern, with the right shoulder lower than the left, suggesting potential market weakness [1] Group 2: Leading Stocks and Market Sentiment - Core leading stocks are essential indicators for assessing whether the market has reached its peak, as seen in historical trends from figures like Livermore and O'Neil [1] - The abandonment of leading stocks often precedes significant market downturns, with new leaders emerging from the aftermath of market turmoil [1] Group 3: Sector Performance - The recent strength in utility stocks signals a sign of market fatigue, as these stocks typically perform well when the overall market is struggling [1] - The resilience of the Shanghai Composite Index is attributed to the support from banks, insurance, and utility stocks, which tend to rally during market downturns [1] Group 4: Micro-cap Stocks - The stability of the micro-cap stock index is due to the active participation of traditional retail investors and quantitative private equity, especially when institutional investors withdraw [1] - There is a need for preparedness, as prolonged market friction could lead to significant declines in individual stocks, even if the Shanghai Composite Index does not experience substantial pullbacks [1]