ARKK rebounded before hitting key level amid possible tax hikeARKK is one of the hot actively managed ETF. After 33% drop from its recent high, it's re-approaching key level of 105.25.
There are two possible scenarios:
1. What I hope for: Price completes consolidation and head up again.
2. What it might be: Price seeks support at key level before making decision of which way to go!
From the structure formed and MA, the 2nd scenario is likely. That means, ARKK is a bit weak and no need to rush to buy long.
It's not a trade plan, instead I suggest setting alert at 105.25 and watch.
As I noted that market is less impacted by US 10Y yield. NQ and the Treasury were both in the red. I guess, the corporate tax hike started to play which is in line with what I mentioned previously, refocus on the corporate earnings. That tax hike will harm the earnings and market started to price in the factor.
