The breakthrough of the Micron 20-day line was a key point for semiconductor recovery...
Currently, the 20-day line is around $997, and as of now, it's about $983, roughly $14 lower.
There is a high possibility that a trend recovery will occur if the 20-day line is broken through,
and the relative strength of SOX / S&P500 also leaves about -4.2% below the 20-day line.
Since SOX has been stronger than S&P500, semiconductors have seen significant gains, so this part is also being closely watched.
It seems that the recent rise of Samsung and SK Hynix, along with anticipation for Google's earnings announcement, is driving the market up.
Since yesterday, experts have been recommending gradual installment buying as they believe the short-term bottom has been reached and the trend is upward. (Of course, not all expert opinions are correct.)
However, many people who have poured in too much money are now out of cash, and due to the recent high volatility, there is a concern that if they rush in with leverage today, instead of a smooth curve, a sharp rise followed by a short-term adjustment may occur the next day.
Today, after the gap up, it remains to be seen whether there will be buying momentum from foreign investors in the long position, or if there will still be a lukewarm response, or even a bomb sell-off that will further push down stock prices.
Personally, I believe that after yesterday's short selling drove the price down by -2%, and then it rebounded, there are likely many empty bids for large-cap stocks. Therefore, there is a high possibility of participation in buying.
Morgan Stanley and UBS, who had issued sell recommendations in early July, have all changed their positions to recommend buying semiconductors, and the recent trend shows that views on semiconductors are gradually becoming more positive.
There are still about two hours left before the main session begins. I hope for good results today as well.
