On September 22nd, the proportion of A-share stocks with a turnover rate below 3% fell for the third consecutive day to 70.52%, while the proportion of stocks with a turnover rate above 5% rebounded from a two-year low last week to 15.42%, continuing to approach the threshold level. Overall, the turnover rate has temporarily stopped falling; attention should be paid to whether it can break the downward trend since July.
-------- Note: 1. When the proportion of stocks with a turnover rate below 3% rises to near a medium-to-long-term high, especially near historical highs (dashed line in the chart, representing a reversal trend), it means the market is likely to encounter a temporary low, 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), a strong profit-making effect will emerge in the market, making the market trend sustainable. 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 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.
