Broad strategy: signals of the bottom of a new emotional cycle are emerging.

Guangfa Strategy released a research report stating that, in the previous period, with the continuous decline of small and microcap indexes such as the Zhongzheng 1000 and Guozheng 2000, the sentiment indicator measuring the market's hot and cold trends has once again approached the 0% percentile, and the main index has also moved near the 100-day moving average. On the one hand, the easing of the US-Iran situation and the US May inflation data meeting expectations have led to a gradual easing of external disturbances; on the other hand, towards the end of June and July, both A-shares and US stocks will once again enter the earnings report window, and the market will return to being dominated by fundamental pricing. Taking into account recent changes, signals of the bottom of a new round of market sentiment cycles have already appeared.