when trying to identify turns in the market and depending on the current market conditions there are certain issues that are ahead of the broad markets at this time ark innovation etf arkk is one of them and is mondays premarket prep stock of the day arkks may low it is common knowledge that cathie wood’s main fund peaked almost a year before the sp 500 and its meltdown was a precursor to the rout in the high price to earnings to growth stocks not as much attention is paid to the issue leading the market out of the abyss while the sp 500 index did not find a tradeable bottom until june 17 ark bottomed over one month prior on may 6 at 3510 that came in just above its march 2020 low 33 and below its april 2020 low 3941 while the issue did once again crater in june it never made a new low for the move only falling to 3565 a few days prior tp the index making its current low for the year related link cathie wood and ark invest still bullish on zoom after earnings report heres why august top the timing of its peak versus the sp 500 index was as not as pronounced as the bottoming process ark pushed through its may high 5271 rallying to 5386 on aug 11 and began to retreat in comparison the sp 500 index did not breach its may high 4305 until aug 16 peaking at 432750 and then reversing course premarket preps take after friday’s steep decline and the followthrough in premarket trading the “buy the dip” crowd was on full alert on monday’s show ark was examined as a candidate for the strategy when the issue was being covered it was in the red by nearly 1 at the 42 area “keep an eye on the growth names they have been your leader over the last 12 months” said premarket prep cohost dennis dick “if it can find support at the 40 area there is a chance here on the bullish side” the author of this article identified potential support ahead of the 40 area investors were alerted that the issue has a series of four consecutive lows from july 1215 ranging from 42204264 the issue trading at discount to former lows made it a candidate for the long side if the bulls were able to defend the premarket low arkk price action similar to the sp 500 index the issue never came near its premarket low and provided for a lowerrisk long off the opening bell after a lower open monday 4190 vs 4284 it only went another 4 cents lower to 4186 and staged a solid rebound as of 130 pm est it had surpassed friday’s close reaching 4340 and was trading actively in the mid42 handle the etf ended mondays session down 161 at 4213 arkk moving forward the ark etf has a tendency to put in multiple lows in the same area following an extended decline investors attempting to go long the issue may want to wait for another opportunity to purchase the shares closer to monday’s low or if attempting a long at the current area they can lean on that low as a potential exit point if a rally does not materialize the discussion on the issue from monday’s show can be found here related link confounding trade cathie wood dumps 50m in nvidia shares just 2 weeks after major buy and a day ahead of earnings