The market has closed, and today all three major A-share indexes ended in the green. The Shanghai Composite Index closed up 0.7%, the Shenzhen Component Index rose 1.08%, and the ChiNext Index was the standout performer, gaining 1.36%. The total trading volume for both markets was 1.74 trillion, an increase of 177.3 billion over the previous trading day, showing a clear rebound in activity. On the board, 4,387 stocks rose while 975 fell, indicating a decent profit-making environment.

Today’s trend basically matched my prediction from yesterday. The hand-drawn forecast chart I made last night is quite similar to the actual movement. Despite the pressure of several days of bearish sentiment, I boldly predicted a bullish reversal today, and this call turned out to be correct.

Now for the key question—after opening lower, the Shanghai Composite Index climbed and stood above the 5-day moving average. Does this bullish candle count as the starting point for a short-term rally? My view is clear: today is very likely the starting point for a short-term uptrend. Here are my three reasons:

**First, look at the volume signal.** Yesterday, the combined trading volume was only 1.56 trillion, which is an absolute low for the short term. Coupled with yesterday’s textbook doji candlestick, low volume + doji is a classic bottoming signal. Today’s surge in volume and price confirms yesterday’s bottoming signal. This kind of volume-price combination often means the start of a rebound.

**Next, look at the technical breakout.** Today, all three major indexes saw both price and volume increase, breaking through several key moving averages. For the Shanghai Composite Index, it moved directly above the 5-day and 10-day moving averages today—both important short-term resistance levels. Breaking these with volume is a strong technical signal.

**Lastly, look at the performance of small-cap stocks.** The CSI 2000 Index showed a strong bullish pattern today, breaking through multiple lines. What’s more, after the last rally, the CSI 2000 has been consolidating at a high level for 70 trading days. Today’s strong candlestick on the right side of the consolidation box likely signals that the CSI 2000 has room for another breakout to new highs.

So after the close, I remain optimistic about the upcoming trend. Most likely, the index is already at the starting point of a new upward wave.

That’s all for today. I’ll update the forecast chart for next Monday’s trend on Sunday morning, so stay tuned!