The strong performance of auto shares helped stabilize sentiment, but many sectors, such as metals and properties, are under profit-taking pressure.

The Shanghai Composite Index may test the key 1300 level again today, but further gains will be limited by profit-taking pressure.

More selling is possible in the future, because of the changes in the demand-supply situation.

The moves raised hopes that fresh money will flow into the market and helped boost sentiment.

Many shares appear to be a bit expensive after recent strong gains and investors are starting to cash out.

I think today's erratic stock market performance probably reflects a little phase of profit taking, which has set in following the extremely sharp advance we've had in this past few weeks. Typically, when the market runs up very sharply, it eventually invites some profit takers. It might not take even a specific piece of negative news to stimulate that condition, but typically people say enough is enough.