1. Downtrend: Since 10/6, the KOSPI has fallen about 21% over seven trading days. On 10/20, it dropped another 3.73% to close at 5552.74, with an intraday low of 5493—nearly retesting Monday's low of 5488;
2. Heavyweights lead the selloff: Samsung Electronics -2.98%, SK Hynix -4.23%, SK Square -5%;
3. Continued outflows: On 10/20, foreign investors were net sellers of 535.4 billion won and institutions were net sellers of 1 trillion won, with net outflows continuing for several days;
4. Overhangs remain: concerns about AI valuations, fears that the memory cycle has peaked, and unrest in France, compounded by the 10-year U.S. Treasury yield staying elevated at 5.2%+ and the Fed still being in a rate-hiking cycle. KORU rebounded from a low of 10.58 to around 12.1, but this is just an oversold bounce. The key question is whether it can break above 12.5 on strong volume. If it cannot, it will likely retest 10.58 or even fall lower.
Risk warning: 3x leveraged ETFs reset daily and are subject to significant volatility decay. Avoid holding large positions overnight. The above is personal analysis only and does not constitute investment advice.$KORU
