On July 27th, the proportion of A-share stocks with a turnover rate below 3% rose for the third consecutive day to 69.66%, remaining in the middle of the fluctuation range since October 2024, showing an overall slightly upward trend since May. The proportion of stocks with a turnover rate above 5% further decreased to 21.59%, again approaching the low point of the month, but still remaining above the threshold. This suggests that market trading activity is temporarily low, but remains relatively active in the long term.
-------- 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 means the market is likely to encounter a temporary low point, making a reversal or rebound likely.
2. When the proportion of stocks with a turnover rate above 5% remains above the threshold (dashed line in the chart), the market will experience a strong profit-making effect, making the market trend sustainable. During a bull market, this indicator will remain above the threshold, leading to a broad-based market rally; while during a bear market, this indicator is mostly below the threshold, and occasionally exceeding the threshold should be viewed with caution due to the risk of a pullback after a surge.
