The market has continued to 'cool down' recently; what's next? Early Thursday trading was generally characterized by minor fluctuations, with indices remaining stable and avoiding significant corrections. However, individual stocks performed relatively weakly. The CSI 2000 opened with two consecutive down days, indicating that today's pullbacks in individual stocks were still evident. This mainly stems from 'artificial cooling,' so in the short term, caution is advised for high-valued stocks and those that have risen sharply, as short-term impacts are likely. Simply put, upward potential is now limited. This was clearly visible today, with a notable decrease in 20cm gainers.

From a technical perspective, short-term fluctuations are unavoidable, but they are likely to remain in a strong consolidation pattern. As long as the 4034 level is held, the market remains strong. From a moving average standpoint, the 5-day line will gradually approach the 10-day and 20-day lines.

Consolidation in a central range increases trading difficulty, requiring better stock selection and timing. Those with weaker fundamentals should exercise caution and avoid overly aggressive strategies—consider buying on dips and selling on rallies.

Sector-wise, both commercial space and AI applications saw broad corrections, which is normal given their previous large gains. The market's main direction hasn't changed, though the commercial space sector is likely to shift into a wide-range consolidation phase, with inevitable major divergences. Patience is key—wait and see.

AI applications remain a key area to monitor. Corrections offer opportunities for continued tracking, but attention to timing is crucial. Stocks with recent consecutive gains may face profit-taking pressure, and with artificial market cooling, upward potential is limited. Avoid chasing gains; instead, wait patiently for pullbacks and look to add positions at lower levels.