Chart of the Day - Wednesday, May 5th, 2021

Today’s Chart of the Day was shared by Greg Harmon (@harmongreg). It's a daily candlestick chart of the popular ARK Innovation ETF, $ARKK, over the past 14-months. This ETF, along with its acclaimed manager, Cathie Wood, rose to the spotlight last year as it surged off the pandemic lows. The top holdings include high-growth companies like Tesla, Teledoc, Roku, Square, Shopify, and Zillow. Therefore, it's no surprise that it has come under pressure lately as growth has fallen out of favor relative to value. $ARKK currently sits 28% off the February highs. But as Greg points out, $ARKK is at a crucial make-or-break point here. It's testing the 38.2% Fibonacci retracement of the post-pandemic rally for the 3rd time, along with the 200-day moving average. $ARKK will need to catch a bid soon, or things could get even uglier for this already bruised ETF.