Market Overview - The three major indices experienced a collective pullback last Friday, with the market's future direction being closely monitored due to significant news over the weekend [1] - The overall market sentiment remains bullish in the medium term, with expectations for short-term upward movement if key sectors like brokerage firms show strength [1][2] Artificial Intelligence Developments - Tesla showcased its smart driving assistance plan at the World Artificial Intelligence Conference, indicating further implementation in China, which is favorable for the autonomous driving sector [1] - Alibaba announced advancements in its Quark AI glasses, introducing mainstream features such as calling, music, translation, and meetings, which will positively impact the AI glasses market [1] Trade Relations - The U.S. Secretary of Commerce announced that the deadline for increased tariffs starting August 1 will not be extended, and a high-level U.S. business delegation will visit China, suggesting potential resolutions in trade negotiations [1] - This week is critical for U.S.-China trade talks, which could significantly influence short-term market trends [1] Technical Analysis - The three major indices did not continue to reach new highs last Friday but showed stability without breaking below the 5-day moving average, indicating a lack of significant selling pressure [2] - The market's overall volume has continued to shrink, suggesting that there is no large-scale capital exit, and the market is currently in a stable phase [2] - There is a need for the market to refresh its highs today, particularly in key sectors like brokerage firms; failure to do so may lead to continued fluctuations or a short-term pullback [2] Sector Performance - The market has not yet formed a collective upward trend, and there is a need to be cautious of sectors that have seen significant short-term gains, such as water and electricity, which may require profit-taking [2] - Low-positioned sectors like finance and technology, which have not experienced substantial increases, remain areas of interest for observation and potential holding [2]