On July 8th, the proportion of A-share stocks with a turnover rate below 3% rose to 66.5%, marking the third 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 25.1%, indicating a continued decline in market activity, although it remains above the threshold.
-------- Note: When the proportion of stocks with a turnover rate below 3% reaches a historical high (dashed line in the chart, representing a reversal trend), it suggests the market is likely encountering a temporary low, making a reversal or rebound likely. Only when the proportion of stocks with a turnover rate above 5% remains above the threshold (dashed line in the chart) will the market experience a strong profit-making effect, 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; conversely, during a bear market, this indicator is mostly below the threshold, and occasionally exceeding it should be viewed with caution, as there is a risk of a pullback after a surge.
