Zhitong Finance APP learned that BTIG believes that S&P 500 index will approach 3400 points later this month, and Tesla (TSLA.US), ARK Innovation ETF (ARKK.US) and Bitcoin are close to "breakthrough key levels."
BTIG said the S&P 500 will not have a V-shaped rebound from the 200-week moving average as in 2018. Its 200-week moving average is currently at around 3594 points, about 1.2% below the current level and is generally considered the dividing line between market adjustments and recession declines.
"We believe that the S&P 500 will fall this week after a Monday-Tuesday rebound and approach 3400 later this month," said Jonathan Krinsky, chief market analyst at BTIG. “From the VIX curve, we still don’t see panic, but as we have seen in history, this may change soon,” he said. “Although market sentiment continues to be sluggish this year, the American Association of Individual Investors (AAII) stock allocation survey showed a very different situation.” The total stock allocation ratio is still 63.4%.
Krinsky said that Tesla, ARK Innovation ETF and Bitcoin are all "somewhat related" and are close to "breaking through key levels" - Tesla is $220, ARK Innovation is $35, and Bitcoin is $18,000.
Krinsky said Tesla's trading volume is very large under $220.
The ARK Innovation ETF has approached the $35 level for the fifth time since 2018. There was no breakthrough in the support level in the first four times, but now the top stock in the ARK Innovation ETF is Tesla, with a weight of about 9%, which is likely to fall below the support level for many years. "Bitcoin has remained resilient over the past few months, maintaining its pre-2017 high (about $18,000-20,000)," said
Krinsky. "However, we think Bitcoin is close to breaking the support level, which will open the door to a drop to about $14,000."
