While the broad markets continue to crash and make lower lows, one interesting pocket of the market may be done selling.
The S&P is off about 30% from its highs, but tech growth names have all been clobbered…
Think down 70%.
The poster child of this tech bubble has been ARK and Cathie Wood.
Her funds were on the front page of every investment website through 2021, but it hasn’t been a good ride since then.
However, we could be seeing a turn:
Notice how the market made a flat retest instead of a lower low like we saw in the Nasdaq or S&P.
That tells me the deleveraging may soon be over.
A true test of that will be coming up soon.
We have a huge volume shelf, resistance, and the swing Anchored Volume Weighted Average Price (AVWAP) from the recent highs all coming into play.
If ARKK can manage to move above that, it would signal to me that the worst in tech stock growth land could be over…
And that we need to start looking for “Stage 1” bases to start playing.
If you’re wondering about the indicators I used to analyze ARKK on that chart, and you want to learn how to use them yourself…
Original Post Can be Found HERE