On July 9th, the proportion of A-share stocks with a turnover rate below 3% rose to 67.32%, marking the fourth consecutive trading day of increase and remaining in the middle of the fluctuation range since October 2024. The proportion of stocks with a turnover rate above 5% fell to 24.55%, indicating a continued decline in market activity, although it remains above the threshold.
-------- Note: 1. When the proportion of stocks with a turnover rate below 3% increases, especially near historical highs (dashed line in the chart, representing a reversal trend), it suggests the market is likely encountering a temporary low, making a reversal or rebound more likely.
2. When the proportion of stocks with a turnover rate above 5% remains above the threshold (dashed line in the chart), a strong profit-making effect emerges in the market, ensuring the sustainability of the rally. During a bull market, this indicator will consistently remain above the threshold, leading to a broad-based market rally; while during a bear market, this indicator mostly remains below the threshold, and occasionally exceeding the threshold should raise concerns about the risk of a pullback after a surge.
