From the perspective of the international environment, Greenspan is bearish on the U.S. economic trend, and the correlation effect of the decline of Hong Kong's Hang Seng Index has a triggering effect on the decline of the domestic stock market.

From the perspective of the domestic environment, first of all, the timing of this plunge is worth noting. On February 16, 2007, the central bank announced an increase in the deposit reserve ratio and announced that it would be implemented on February 25; on February 26, the Shanghai and Shenzhen stock indexes showed large fluctuations.

then the stock market plummeted on February 27; through transaction monitoring, it can be seen that funds are shipping and swapping positions, and the market sensitivity coefficient has increased.

Sector rotation is bound to bring about wide fluctuations. Secondly, the market has not reached a consensus on whether 3100 points can become the upper limit of the stock index, but the risk consciousness of 3100 points has been reached; funds began to adjust stock allocations and accumulated huge amounts of funds.

Volume also showed signs of flight from some funds.

The high-profile announcement by securities companies that the stock index has shot straight up to "4,000 points" and the "Top Ten Golden Stocks" is to provide support for fund shipments and retail investors entering the market to take orders.

Judging from market news 1. A-share stock value futures will be launched from April to May; the Hong Kong Stock Exchange plans to restart commodity futures, and H-share financial index futures may be launched from April to May 2. Countermeasures to consider the worst-case scenario for the Taiwan Strait situation during the two sessions 3.

Chairman Shang Fulin may resign. 4. Asset appreciation tax (capital gains tax) may be levied. 5. Xinhua editorial during the Spring Festival: Revisiting the two major stock market crashes in U.S. history. 6. Xiao Fei’s recent continuous reduction of holdings and tradable locked stocks

More and more 7. Institutions are experiencing redemptions or swapping positions, triggering selling. Judging from market expectations, although investors rationally believe that the recent stock index has risen too fast, there is still a steady stream of residents' savings entering the stock market, forming rational perceptions and non-conformity.

The contradiction between rational behavior and the moment when all people are called stock investors and fundamental citizens has arrived. This moment also indicates that the stock index has reached a short-term top.