Before a market reversal occurs, there will always be some ominous market characteristics:

1、 The index maintains a trend of horizontal oscillation and consolidation within a narrow area, facing a dilemma of up and down, with limited room for both rise and fall; 2、 In terms of K-line morphology, the K-line is relatively small in size, often with multiple or continuous small bearish and bullish lines, and often exhibits a cross star trend between them; 3、 The stock prices of most individual stocks are stagnant and lack the potential for significant profit fluctuations; 4、 The investment hotspots are flat, without strong leading sectors or leading stocks that can gather popularity; 5、 The hesitation of incremental funds entering the market has led to a significant decline in trading volume and occasional fluctuations in land volume; 6、 The market sentiment is scattered, and investors have a strong wait-and-see atmosphere.

As for whether the outcome of the reversal is an upward breakthrough or a downward breakthrough, it depends on various market factors, including:

1、 The position of the stock index, whether it is at a high or low level.

2、 Whether the stock market rises or falls before the appearance of signs of a reversal is due to reaching a certain balance between long and short positions when the rising trend reaches its end, or due to the decline trend leading to the depletion of short selling momentum. The equilibrium in an uptrend depends on whether the market can gather new long energy to determine the possibility of an upward breakthrough, while the equilibrium in a downtrend is more likely to form an upward turn.

3、 Observing the flow direction of market funds and the strength and nature of the incoming funds, it is usually highly likely that the abnormal movements of benchmark stocks in the market indicate the possibility of an upward reversal.

4、 Observe whether there are significant fluctuations in buying and selling orders in mainstream hot sectors during the trading session, and pay attention to whether the leading stocks in the sector can rise. If only unpopular stocks make up for the gains or oversold stocks rebound strongly, it is often not enough to trigger an upward trend.