A few key events to keep an eye on.
Quarter-end rebalancing in the U.S. runs from June 26 to 30. Some outperforming stocks get trimmed, while underperformers see additions. This seems to be why chip stocks are facing some selling pressure and the Mag 7 are seeing accumulation. However, once the quarter-end window dressing wraps up on June 30, the flows tend to reverse starting July 1.
South Korea's National Pension Service (NPS) is suspected of reducing about $1B worth of domestic equities that had incredible gains over the past year, during June 16-23, to work toward the maximum cap for domestic holdings. This is expected to continue in the coming months. NPS says the timing and amount of rebalancing is confidential but will be done to minimize market impact. This means chip stocks, particularly hot memory names, could see temporary pressure.
July 1 typically brings significant fresh investment money into funds.
SK Hynix (HYNX) IPOs at $166 on July 10.
$Direxion Daily MSCI South Korea Bull 3x Shares(KORU)$ splits 20-for-1 on July 15.
$Micron Technology(MU)$ $SanDisk Corp.(SNDK)$ $Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ $Direxion Daily Semiconductors Bear 3x Shares(SOXS)$
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