South Korean stocks touch 200-day moving average for first time in 17 months

what happened

According to Seeking Alpha, the iShares MSCI South Korea Capped ETF (EWY) dropped to its 200-day moving average on Wednesday, testing that level for the first time in 17 months. Pressure on the South Korean market intensified as a fresh wave of selling hit technology stocks, while investors questioned how AI companies are valued and how expensive their financing has become.

EWY fell 4.02% to $159.83 and closed just above its 200-day average of $159.63. It also stayed below its 50-day average of $179.49, and its relative strength index stood at 33.01, approaching oversold territory. The South Korean market dropped 8.34% to roughly 5,540 points, marking seven straight sessions of losses and its lowest level since late July.

Zaccardi noted on X that many price levels with heavy trading volume sit above the fund's current price. Those levels could act as resistance if EWY attempts a recovery.

why it matters

For investors, this signals that South Korea's technology sector remains sensitive to sentiment around AI and the cost of capital. Levels where moving averages and high-volume zones converge will be key to the fund's next move and to broader market direction.

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