The A-share market is experiencing a "bottomless pit" style of decline, cutting down retail investors, especially with the Shanghai Composite Index continuously setting new lows, truly a new low every day! Today, the Shanghai Composite Index once again plunged to a new low of 2765 points, and under the continuous new lows, individual stocks have suffered, and retail investors have also suffered heavy losses. If this continues, they will lose everything they have left!

Taking today's trend as an example, in the early morning, the Shanghai Composite Index was driven higher by the financial sector, but the rise was to lure more buyers, and soon it would be met with a bearish onslaught, leading to a plunge. Especially at the end of the day, the decline further widened; as the major indices' decline expanded, the sectors and individual stocks also saw a synchronized increase in their declines, with individual stocks suffering and closing with 4,700 stocks down. What is the reason?

Reason one: Because the A-share market's "rise" is out of sync with the timing, it was thought that today's A-share market would take advantage of the merger and reorganization of Guotai Junan and Haitong Securities to drive a significant increase in trading volume; however, the market used this positive news to lure more buyers, only to be counterattacked by bears, perhaps without the fake lift to lure more buyers, the plunge would not have occurred, and individual stocks would not have suffered such a severe decline.

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Reason two: Because the A-share market is still searching for a bottom, it is in the process of bottoming out, with a new low every day, which is forcing retail investors to sell at a loss, pushing the market into a state of despair; it seems to be brewing a trend of accelerated decline to find the bottom, thus forming a downward trend, leading to an accelerated plunge.

Reason three: Because the bears are not dead, the A-share market's plunge will not stop! Today's A-share market itself hid a powerful force for short selling, similar to the continuous decline of the A-share market this year, with a wave of short selling at the beginning of the year, and another wave in the middle of the year, today's high and plunge were also caused by bearish selling.

Reason four: Because individual stocks are indeed too poor, forming a free-fall decline pattern, many stocks have no support, no resistance, and as long as the overall market slightly declines, individual stocks will face a severe decline, all of which are due to the poor overall environment of the A-share market, and the severe decline of individual stocks is a market issue.

Will there be an accelerated plunge next week?

After the A-share market set new lows for five consecutive days this week, the downward trend of the Shanghai Composite Index is accelerating. Will there be an accelerated plunge next week?

Based on the current environment and trend of the A-share market, it is very likely that the A-share market will accelerate its plunge to find the bottom next week, for the following reasons.

First: The A-share market has entered an accelerated bottom-seeking phase, currently staging a final plunge, starting with a fluctuating decline, followed by an accelerated plunge, and only after a significant drop will it stabilize.Secondly: The downtrend of the Shanghai Composite Index (SSE) has fully formed, and from a technical perspective, it would not be surprising to see an accelerated plunge next week! After all, as the center of gravity shifts downward, the SSE is expected to drop sharply in one go to reveal the true bottom. Therefore, an accelerated plunge is inevitable next week.

Of course, if the SSE does experience an accelerated plunge next week, there is no need to be pessimistic about this plunge, nor should one blindly sell out. On the contrary, an accelerated plunge is a good thing, as it brings a swift resolution and is better than a daily grind lower. Only after a significant drop can there be a substantial rise.

In summary, there is no pessimism regarding the SSE's performance next week; instead, we await the final dip for a buying opportunity. Once the market stabilizes and sends a reversal signal, it will mark the optimal time to enter the SSE. Therefore, the outlook for the SSE next week will be even more optimistic.