Under the surface, we are seeing breakdowns in high-beta stocks that had formerly been upside leadership for the market, even as the major indices hold up above initial support. A correction has been in place for high-flying stocks since mid-October, which has resulted in a one-month return of -11.7% for the ARK Innovation ETF (ARKK) , a high-growth technology stock proxy. We view the sell-off in ARKK as a risk-off indication for the broader market. The correction in ARKK looks poised to deepen over the next few weeks, at least. Intermediate-term momentum recently shifted to the downside per the weekly MACD, and the weekly stochastics have room to move into oversold territory. Next support on the chart is near $67, where the February high and the 200-day MA converge. The daily chart suggests that there is downside risk in the short term to the 200-day MA. ARKK broke down below cloud-based support late last week as a fresh bearish catalyst. The daily MACD shows that short-term momentum is strongly negative, and there are no signs of downside exhaustion yet. The ratio of ARKK to the SPX saw a steep run-up in September, reflective of a strong tape led by riskier assets. The ratio has since seen a significant retracement, indicating that the market is now avoiding risk. The underperformance has resulted in a downturn in the 50-day MA for the ratio, something we last saw in late February. The ratio also has room to move toward next support from its 200-day MA, supporting additional downside leadership from ARKK in the near term. In conclusion, the sell-off in ARKK is a risk-off indication for the broader market, which looks vulnerable to a deeper correction over the next few weeks. We would be quicker to reduce exposure to volatile technology stocks, which tend to get hit harder than the average stock during corrective phases. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . 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