Semiconductor ETF $SMH Drops Over 20%; Traders Eye $SOXL After Surge to $30 from $28.85 Entry

The Semiconductor ETF $SMH has experienced a significant decline, dropping over 20% in just 15 days, marking only the third occurrence of such a downturn since 2005. This trend has historically indicated a bottoming process, leading to positive returns over the subsequent three, six, and twelve months. In the wake of this decline, traders have shown interest in the leveraged ETF $SOXL, with some entering long positions at approximately $28.85 and noting a strong bounce in after-hours trading, where it reached $30. Analysts are monitoring the $SOXX index, which has recently sliced through its 200-day moving average, with expectations of a potential trade long via $SOXL as traders anticipate a recovery.