The real big bearish factor for A-shares this week is that the Shanghai Composite Index set new lows for five consecutive trading days, with an even bigger bearish factor being that the index closed at its lowest point of 2765, forming a medium bearish candlestick.

Following the continuous five-day new lows set by the Shanghai Composite Index, the center of gravity has been continuously shifting downward, and the pessimistic and risk-averse sentiments among the market and investors have surged rapidly. Based on the overall environment, index trends, and sentiments of A-shares this week, it is inevitable that A-shares will accelerate their decline to find a bottom next week. The most frightening thing is that two more bearish factors emerged over the weekend, which seems to have doomed A-shares to accelerate their decline next week.

Bearish factor one: Global stock markets are falling

On Friday, global stock markets experienced declines to varying degrees, with the Asia-Pacific region leading the way, including China's A-shares, Japanese stocks, Indian stocks, and South Korean stocks, all falling across the board.

European and American stock markets also saw declines, with the three major European stock markets falling by 1%; the three major US stock indices also fell across the board, especially the Nasdaq index, which fell by more than 2%. The collective decline of European and American stock markets overnight is indeed the biggest bearish factor for A-shares next week, which will inevitably drag down A-shares.

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Bearish factor two: Reduced expectations for a Fed rate cut

The global capital market is hoping for a rate cut from the Federal Reserve. Once the Fed starts a wave of rate cuts, it will be beneficial for the global market. According to previous US economic data, a rate cut in September by the US was considered a foregone conclusion.

However, after the US released the non-farm employment data for August overnight, expectations for a rate cut by the Fed in September have been reduced, which may disappoint the world again. The further reduction in expectations for a Fed rate cut has led to investor concerns, resulting in a collective decline of European and American stock markets overnight.

Will A-shares definitely experience a significant volume decline next week?

The current A-shares are truly facing "internal and external troubles." A-shares themselves are in a state of continuous decline, accelerating their fall to find a bottom, coupled with the adverse factors of external troubles, it seems that A-shares are indeed going to experience a significant volume decline next week.The outlook for the A-share market at the beginning of next week is indeed not optimistic; a significant drop with increased trading volume is to be expected. The A-share market is entering its most pessimistic and panic-inducing phase, with the final plunge to find the bottom. A substantial drop with increased volume is an inevitable trend, for the following reasons:

Firstly, after the Shanghai Composite Index set new lows for five consecutive trading days this week, the center of gravity for major indices has once again shifted downward. Especially on Friday, the index closed at its lowest point, indicating that there was significant selling pressure at the end of the day, possibly due to short-selling forces attempting to avoid the risk of a substantial drop with increased volume next week.

Secondly, global stock markets have experienced varying degrees of decline. When global stock markets are falling, it is certain that the A-share market will follow suit. Additionally, the anticipated interest rate cut by the Federal Reserve in September is likely to be a disappointment, and this pessimistic sentiment will inevitably spread to the Asia-Pacific stock markets. This means that the Asia-Pacific markets, including the A-shares, are expected to decline on Monday next week.

Therefore, it is not surprising if the A-share market experiences a significant drop with increased volume next week, as it is currently in a situation of "internal and external troubles." In the short term, if these unfavorable factors of internal and external troubles are not resolved, the A-share market will not be able to stop falling. Continuing the trend of this week's decline, a substantial drop with increased volume is just a matter of time.

Of course, even if the A-share market does experience a significant drop with increased volume next week, investors are advised not to be pessimistic. This is the final plunge to find the bottom, and it is crucial not to give up just before the dawn. It is better to remain calm or wait patiently, rather than blindly selling out in panic.