Today’s price fluctuation is actually not the main point; the key is that market sentiment is beginning to show subtle changes. I want to quickly outline a few observation angles:

**1. What does a gap down at open really signal?**

From a technical perspective, a gap down indeed aligns with the logic of a rebound to absorb buying pressure. But from another angle, a gap down is also clearing the pre-holiday selling pressure. Honestly, I anticipated today would face some resistance, and there would definitely be volatility during the session—after all, some funds want to realize gains before the holiday, which is normal.

But there’s a detail worth noting: the market uses a gap down to release pressure, then quickly pushes higher in response. This in itself indicates that the current bullish sentiment is quite firm. Don’t dwell on whether continuous rises are meaningful; the current consecutive gains essentially serve to maintain a bullish atmosphere—even if selling pressure is intense, it prevents a sharp plunge and crash.

**2. How should we interpret the volume contraction phenomenon?**

A rise from a gap down to finish higher indeed shows the market’s resilience, but with trading volume shrinking by over 100 billion, how should we interpret this signal?

Since it’s a pattern of a rebound to absorb buying pressure, why are new funds still hesitant to enter? The market is still experiencing volume decline, which has several implications:

**First, the holiday effect.** Market participation naturally decreases, and shrinking volume is a seasonal phenomenon; no need to over-interpret.

**Second, the widening divergence between bulls and bears.** After consecutive gains, market views on the future start to diverge. Although the bullish trend remains strong, more and more funds are adopting a wait-and-see attitude. No one dares to buy in easily, so incremental funds are hesitant to enter. But this doesn’t mean the current trend will reverse; it just indicates that more confirmation signals are needed.

**Third, volume contraction can sometimes be a positive sign.** Especially when it occurs during a decline, it suggests there’s no panic selling, and holders are reluctant to sell at a loss. This precisely indicates that internal market confidence has not been completely shattered, and bottom-holding chips are relatively stable.

Overall, don’t be scared by shrinking volume; sometimes, less trading activity can make the overall pattern clearer.