On June 1, even with increased institutional participation, short-term market movements may still be driven by a combination of sentiment and liquidity.

According to analysis, shifts in retail sentiment near key price levels often amplify volatility through heightened trading activity and trend-chasing behavior, making prices more prone to rapid surges and pullbacks.

From a market structure perspective, institutional capital tends to influence the underlying "trend," while retail sentiment frequently affects the "pace" of that trend.

When retail participants' expectations rapidly converge via social channels, short-term markets are more susceptible to overextending, often followed by pullbacks to rebalance.

Conversely, if retail sentiment cools and institutional demand fails to pick up the slack, the market may enter a prolonged period of consolidation.

For traders, sentiment indicators are not directional signals but rather risk management signals: the more uniform the sentiment, the greater the need to monitor key support levels and trading structures, as a break of these levels could lead to a faster short-term retreat.

Therefore, observing the combined changes in trading volume, fund flows, and volatility is more meaningful: increasing volume alongside declining volatility often indicates healthier market turnover, while decreasing volume with rising volatility suggests liquidity shortfalls and potential slippage risks.

Key points to watch going forward include whether sentiment returns to rationality, whether fund flows improve, and whether key price levels hold firm.

When both sentiment and fund flows improve simultaneously, the market is more likely to transition from consolidation to a more sustainable recovery phase.