Today, major A-share broad market indices collectively retreated. As of the market close, the Shanghai Composite Index and the Shenzhen Component Index fell by 1.52% and 2.14%, respectively. The ChiNext Index and the STAR 50 Index declined by 2.16% and 2.55%, respectively. The total market turnover reached 3.39 trillion yuan, marking the seventh consecutive trading day above the 3 trillion yuan threshold. The number of advancing and declining stocks stood at 1,047 and 4,387, respectively. The number of gainers hit its lowest level since April 7. The median stock price change was a decline of 2.06%. Yesterday, the ChiNext Index surpassed its 2015 high, leading to analysis suggesting the rally that began in 2024 had entered its mid-to-late initial stage. However, the market corrected today, seemingly disregarding the ChiNext's new high from the previous session. The Shanghai Composite Index reached a new high today but formed a bearish 'shooting star' candlestick pattern on its daily chart. Since April 7, 2025, the Shanghai Composite Index has exhibited this 'shooting star' pattern several times upon making new highs. Let's review these instances. On September 18, 2025, the Shanghai Composite formed a 'shooting star' daily candlestick. The subsequent corrective pullback to the wave low lasted for 4 trading days. On October 30, 2025, the index showed the same pattern, leading to a 5-trading-day corrective pullback to the wave low. On November 14, 2025, another 'shooting star' appeared, followed by a 7-trading-day corrective period to the wave low. On January 14, 2026, the pattern emerged again, resulting in a 5-trading-day corrective pullback. On March 3, 2026, a 'shooting star' formed, leading to another 5-trading-day corrective period. Since the rally beginning March 24, 2026, there have been several pullbacks, each lasting a maximum of only two trading days. Therefore, the two-day mark is a critical time node. If the market hits a new low next Monday, lower than today's, the corrective period could extend to resemble the aforementioned five instances following the 'shooting star' pattern, lasting 4 to 7 trading days. In this scenario, there is a possibility the Shanghai Composite could fill the gap formed on May 6 (as shown in the chart above). If the market does not set a new low next Monday or in the coming days, it would indicate today's adjustment is similar to those since March 24, lasting at most two trading days. Regarding potential factors for the market adjustment, analysis from yesterday pointed to possibilities that materialized today, albeit delayed by one day. First, there was an expectation of a 30-minute timeframe top divergence resonance in the Shanghai Composite Index, which currently remains present. Second, latent capital positioned ahead of former U.S. President Trump's visit to China may be taking profits. Despite today's market correction, there was no significant evidence of large-scale profit-taking from core stocks. First, Zhongji Innolight, a major core stock in this rally, did not fall but instead rose by 2.74%. TFC Optical Communication rose by 3.65%, while Eoptolink Technology fell by 1.76%. Second, among the top 20 stocks by turnover (mostly comprising AI hardware and semiconductor chip stocks from the current main theme), the majority closed higher or with declines within 3%. The fact that core stocks did not experience significant declines, and that most top-20 turnover stocks did not close with large bearish candles, suggests capital in the AI hardware sector has not engaged in substantial profit-taking. Overall, the market trend aligns with recent analysis: there will be corrective fluctuations during the primary uptrend, maintaining a bullish outlook. A shift would only be signaled by the opposite phenomena described above, which would indicate substantial profit-taking from AI hardware capital. Sector-wise, defensive styles emerged. The only gaining industry sectors were banking, oil, agriculture/forestry/animal husbandry/fishery, and alcoholic beverages. The latter two sector indices displayed long upper shadows, indicating weak conviction among defensive funds, which took profits upon price increases. Within AI hardware, domestic computing power and PCB sectors saw slightly larger declines. The drop in PCB was partly related to market rumors ("small essays") concerning product prices from major PCB manufacturers. However, based on recent public research information from major PCB firms regarding product prices, such rumors lack a solid foundation. The fact that core AI hardware stocks did not plunge suggests the AI hardware theme is not over for this phase. However, the loss-making effect observed in trailing stocks today warrants attention. Stocks that have surged significantly since the March 23 low, especially those with gains exceeding 100%, may experience heightened volatility amid market fluctuations. Blindly chasing these stocks at highs is not advisable. Overnight, most U.S. AI and tech stocks advanced. As of this afternoon, NVIDIA's pre-market trading indicated a rise of over 2%. U.S. market performance should be monitored tomorrow morning. If U.S. AI tech stocks rally strongly overnight and A-share AI hardware stocks show a robust recovery tomorrow, the AI hardware theme may face no immediate concerns. If U.S. AI tech stocks generally correct or perform modestly overnight, and A-share AI hardware stocks show a weak recovery tomorrow, the hardware theme may face short-term fluctuation risks, particularly for trailing stocks with higher volatility risk. Now, let's review today's key news. 1. The People's Bank of China reported that aggregate social financing increased by 15.45 trillion yuan in the first four months of the year, with new loans totaling 8.59 trillion yuan. The M2 money supply grew by 8.6% year-on-year at the end of April. 2. According to South Korean media TheElec, Korean anhydrous hydrogen fluoride producers, including Solbrain, ENF Technology, and Huseong, will begin procuring the chemical from China this month, with prices approximately 40% higher than at the start of the year. 3. SMIC released its Q1 report. The company's Q1 sales revenue increased by 0.7% quarter-on-quarter. Gross margin was 20.1%, up 0.9 percentage points from the previous quarter. The company forecasts Q2 revenue growth of 14% to 16% quarter-on-quarter, with a gross margin between 20% and 22%. 4. TSMC首次提出了AI芯片的“三层蛋糕”理论：强调光互连是“未来最重要的”，COUPE技术可能占据“C位”。 In summary: Today's market adjustment can be temporarily viewed as a corrective fluctuation within an ongoing uptrend. The market's recovery strength should be observed tomorrow. The key focus is whether the Shanghai Composite Index sets a new low next Monday. If it does, there is potential to fill the May 6 gap, which could imply a corrective period of 4 to 7 trading days. Sector-wise, continue to focus on AI hardware and semiconductor chips, while also monitoring humanoid robotics, commercial aerospace, and lithium battery sectors. Chasing rallies during market corrections is not advisable.