ARKK’s $90 Rejection: Is the Disruptive Tech Rally Losing Steam?

The ARK Innovation ETF (ARKK) experienced a week of significant volatility, ultimately failing to sustain a mid-week rally and revealing a potential exhaustion of buying pressure. After starting the week at $87.77, the fund’s attempt to reclaim recent highs was decisively rejected at the $90 level, leading to a two-day sell-off. This price action, which saw the fund close the week down 1.74% at $86.24, stands in sharp contrast to the broader market’s strength, raising concerns about the near-term resilience of the disruptive technology sector.

A Mid-Week Bull Trap

The week’s trading resembled a classic bull trap for short-term traders. Following a sharp 4.4% drop from Monday’s close to Tuesday’s low of $83.86, dip-buyers emerged aggressively. This buying pressure drove ARKK up more than 7.4% to a high of $90.10 on Wednesday. However, this level, just shy of the 52-week high ($92.65) set earlier in the month, proved to be a formidable ceiling. The fund reversed sharply to close at $89.30. A second attempt on Thursday to breach $90 also failed, solidifying the level as a key psychological and technical resistance point.

Relative Weakness and Fading Momentum

The most telling signal for investors emerged on Friday. While the S&P 500 and the Nasdaq Composite both posted gains of over 0.50%, ARKK diverged, falling 0.51% on the day. This relative weakness is a significant indicator, suggesting that capital may be rotating out of high-beta, speculative growth and into the broader, more established market leaders. The fund’s trading volume on Friday, at 10.4 million shares, was just below its 65-day average, indicating a steady, rather than panicked, distribution of shares as investors take profits near the top of the recent range.

The $90 Psychological Barrier

The repeated failure at the $90 mark is more than just a technical event; it represents a psychological battleground. For investors who bought into the rally from its April low of $38.57, levels near $90 are a prime opportunity to de-risk and lock in substantial gains. The inability to attract new buyers above this price suggests that, for now, the market’s valuation consensus on ARKK’s high-growth holdings may have been reached. The fund is now caught between long-term believers in disruptive innovation and shorter-term traders content to sell the rally.

A Forward-Looking Perspective

Looking ahead, the price action has defined a clear range for ARKK. The $90 to $92.65 zone remains the critical resistance ceiling. On the downside, the week’s low of $83.86 now becomes the first major line of support. A break below this level could signal a deeper correction, potentially as momentum shifts away from the high-growth narrative that has dominated 2025. Investors will be closely monitoring whether ARKK can consolidate and build a new base, or if this “double top” failure at $90 marks a more significant, and bearish, shift in sentiment.