Research update

A running archive of MAGS (Magnificent 7 ETF) views from Tactical Positioning.

MAGSMag7, broke below the trendline support

MAGSMAGS (Magnificent 7) remains under pressure even as SPX printed an ATH. If it breaks below 63, it could get ugly.

MAGSEquities continue to sell off, especially Tech and the Magnificent 7, as expected. Note that MAGS (Magnificent 7) confirmed a break below the key 63 support yesterday. I warned the other day that MAGS not participating in last Friday's rally was not a good sign.

MAGSThe Magnificent 7 selloff continues as expected. By the end of every bull run, the bellwethers tend to lead the market lower by months, and that's exactly what MAGS (Magnificent 7) is showing. And despite the selloff already on the tape, the floodgates haven't opened unless we see NDX break below 24.2K and SPX break below 6.8K. Patience is key.

MAGSShould MAGS (Magnificent 7) be rejected at 63, we should see more downside.

MAGSThe rally into an NVDA earnings beat helped MAGS (Magnificent 7) break above the resistance. However, I advise caution as most of the key names were sold heavily after earnings regardless of the results. MAGS must hold above 63 to see further rallies.

MAGSMAGS (Magnificent 7) backtested the downtrend resistance again. Bulls must print a confirmed break above this trendline and the key 63 level before MAGS can edge higher.

MAGSI expect a MAGS (Magnificent 7) pullback from the 67 area.

MAGSMAGS (Magnificent 7) struggles to break above 67 as expected. If price continues to stall, it risks heading back towards 63.

MAGSAfter stalling around the 67 level for three weeks, MAGS (Magnificent 7) finally broke above the downtrend resistance line.

MAGSFollowing Monday's breakdown, MAGS (Magnificent 7) continued to weaken and is now sitting on key support. If it fails to produce a bounce from here, it risks heading to 63, followed by 60.

MAGSMAGS (Magnificent 7) headed lower and found support around 63, as expected. The recent relative weakness of MAGS versus NDX is concerning.

Almost all Mag 7 names are running negative free cash flow, and AI capex funding is increasingly coming through secondary offerings rather than the traditional channels we are used to seeing. That usually means those channels are no longer providing enough capital on acceptable terms.

For now, 63 is the level to watch. If MAGS fails to hold here, the structure weakens further and opens the door back to 60.

MAGSMAGS (Magnificent 7) needs to hold above 63. Below 63, the next downside level is 60.

MAGSMAGS (Magnificent 7) bounced from the 60-63 support.

A sustained move above the trendline would put the mega-cap basket back in control. Failure here keeps the setup vulnerable and puts 63 back in play, followed by 60.

This matters for the broader tape. RUT and DJI are showing relative strength, but MAGS is not confirming yet. If mega-cap leadership fails while semis keep weakening, the index rally has less room for error.