This week, the Taipei stock market opened lower but recovered, reaching a peak of 20,000 points before closing at 19,872, successfully surpassing the monthly line. Senior analyst Lin Youming stated that the Taiwan stock market has successfully formed a second leg, indicating a slow bull trend.

Lin noted that the current atmosphere and the level of capital reshuffling during this stock disaster are comparable to, if not worse than, the financial crisis in 2008, with the current financing maintenance rate being lower than it was back then.

To assess the stability of the second leg, it is essential to observe whether the reduction in financing is greater than the index's increase, and the divergence between the low point and the annual line should be at least 20%. After the rebound of the first leg, trading volume will inevitably shrink, as market confidence has not yet recovered. As for the conditions for the emergence of the second leg, trading volume must exceed the five-day average, which can serve as a basis for bullish or bearish judgments.