Chart of the Day - Monday, January 10th, 2022

Today’s Chart of the Day was shared by Brian G (@alphacharts). It's a weekly bar chart of the ARK innovation ETF, $ARKK, over the past two years. The top holdings in this ETF include $TSLA, $ZM, $TDOC, $ROKU, and $COIN. In a lot of ways, $ARKK is the poster child for the growth/tech trade. As you might know, it surged nearly 350% in less than a year coming out of the pandemic. However, it's currently in its worst drawdown since inception, down more than 45% from its highs. As ugly as it has been, Brian points out that $ARKK is currently testing a key Fibonacci level around $81, which represents the 61.8% retracement of the entire post-pandemic rally. The trend is still lower on both an absolute and relative basis, but this would be a logical level for $ARKK to stop going down in the near term. Not to mention, sentiment is getting extremely negative with short-interest near all-time highs.