This week we held our Mid-Month Conference Call for ASC Premium members, running through more than 100 charts and breaking down the most important themes driving this market right now.
It’s a top-down exercise — from sectors and asset classes down to individual setups.
We do this twice a month, and it’s one of the best ways to weigh the evidence objectively as conditions evolve.
One of the key charts we focused on was Cathie Wood’s ARK Innovation ETF, $ARKK.
As capital continues rotating out of growth and into cyclicals, the ARK complex is approaching a critical test.
These are some of the highest-beta names in the market — they tend to tell us a lot about risk appetite.
Since the summer, price has been carving out what looks like a major topping pattern.
Now it’s pressing against the lower bounds of that structure, which also aligns with the VWAP anchored to last April’s lows — a massive level of interest.
We’re at decision time.
I’m watching the 70 level closely in the coming weeks. That’s the line in the sand.
Either ARKK digs in here, invalidates the top, and rips higher — or we’re talking about a confirmed completion.
A strong defense at this zone would be one of the more bullish pieces of evidence for risk appetite — and could add fuel for further upside in these names.
On the bearish side, if ARKK breaks down, we’re also likely to see risk, in general, becoming elevated.
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