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The Kobeissi Letter
@KobeissiLetter
Official X account for The Kobeissi Letter, an industry leading commentary on the global capital markets. Email us: support@thekobeissiletter.com
Joined June 2015
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US semiconductor stocks went from overbought to oversold in weeks: The Semiconductor Index, SOX, fell -17% below its 200-day moving average on Thursday, its largest negative divergence since April 2025. This is also the 2nd-largest such deviation since the 2022 bear market. By comparison, during the 2008 Financial Crisis and following the 2000 Dot-Com Bubble burst, this metric dropped to -49% and -52%, respectively. This marks a sharp reversal from June, when SOX traded +75% above its 200-day moving average, its largest positive deviation since 2000. In other words, semiconductor stocks have shifted from extremely overbought to oversold territory in just 5 months. Semiconductor stocks just saw one of their most violent swings in decades.
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