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Viewpoint: If the selling pressure weakens this week, it could become a reliable bottom signal.

On November 24, wealth management company Swissblock stated that the current risk aversion signals have sharply decreased, and the selling pressure has eased, suggesting that the worst phase of dumping may have temporarily passed. If risk aversion sentiment is used as a bottom warning indicator, the coming week will be crucial. Investors need to see the selling pressure continue to weaken. Usually, the second wave of dumping (with weaker intensity than the first wave and prices maintaining at previous lows) becomes one of the most reliable bottom signals. The second wave typically indicates that sellers are exhausted, and control has shifted back to long positions.

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