South Korea’s stock market has continued to fall today, turning the KOSPI into one of the biggest talking points among global investors.
The index has now fallen almost 44% from its June high, making it the most extreme example of the sell-off spreading through the technology sector. The SOXX semiconductor ETF is also down close to 30%.
KOSPI 1D CHART:
SOXX 1D CHART:
Nasdaq has held up better, falling around 13%, but most of its decline has arrived over the past seven trading sessions. That has raised concerns that the pressure could spread more broadly across US technology stocks.
What makes the move unusual is that the selling has continued despite strong earnings, rising revenue and, in some cases, better-than-expected guidance.
Nasdaq is testing a hidden support zone
Nasdaq has now fallen below its daily 50-EMA band. This marks a change in behaviour, with the band likely to act as resistance during any recovery attempt.
The 26,800 to 27,400 area also overlaps with a previous consolidation zone. Meanwhile, the Stochastic RSI has entered oversold territory, creating the conditions for a possible short-term rebound.
NASDAQ 1D CHART:
The wider technology market is approaching support at roughly the same time:
- KOSPI is nearing its previous consolidation range between 5,000 and 5,500.
- SOXX is testing its value-area low near 461. If that level fails, the next area to watch sits between 431.74 and 445.26.
This alignment could support a temporary relief rally across all three markets. However, oversold conditions alone do not confirm that a bottom has formed.
