Chart of the Day - Friday, May 28th, 2021

Today’s Chart of the Day was shared by Michael Antonelli (@BullandBaird). It's a daily bar chart of the popular Ark Innovation ETF, $ARKK, over the past eight months. The top holdings in this ETF include Tesla ($TSLA), Teledoc ($TDOC), Roku ($ROKU), Square ($SQ), and Shopify ($SHOP). Due to its heavy weighting toward growth/tech, this ETF has become a good proxy for the average retail portfolio out there. Michael points out that the 50-day moving average (blue) and the 200-day moving average (blue) have pinched together to form a confluence of resistance around $115. We haven't seen the infamous Death Cross just yet, but you know it's coming. $ARKK kissed the 200-day in today's session, but we closed the week at $112, below both moving averages. If we happen to get above these two moving averages in the near term, the risk is to the upside. But as long as we're below, the risk is to the downside. Keep an eye on how $ARKK behaves next week!