BTIG chief market technician Jonathan Krinsky sees near-term downside in shares of ARK Innovation ETF (ARKK). The shares are now up 80% from the April intraday lows and 26% above the ETF’s 50 displaced moving average, the technician tells investors in a research note. Over the last ten years, this is about as wide as the spread has been, even during the “extreme hype” of 2020, BTIG adds. The firm says the last two occurrences brought more than 15% drawdowns over the ensuing month. BTIG believes ARK Innovation ETF is “poised for a downside shakeout here.”
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