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Mixed Performance Weighs on the MAG7 as the ETF Hits Moment of Truth

Mixed Performance Weighs on the MAG7 as the ETF Hits Moment of Truth

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The Mag7 ETF is slightly lagging the broader market because of relative weakness in three components. Nevertheless, four components are showing strength and the ETF hit a moment of truth as it returned to the breakout zone. Today’s report will focus on performance for stocks in the Mag7, the Mag7 ETF chart and one of the leading components (Apple).

  • Leaders and Laggards within MAGS
  • MAGS Hits Moment of Truth
  • Apple Corrects after Breakout Surge

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This report continues at TrendInvestorPro with analysis of the other three leaders, Nvidia, Amazon and Alphabet. These three are hitting Bullish Setup Zones after becoming short-term oversold. This report also includes a video. Subscribers can click here for the report. Click here to subscribe and get immediate access. 

Leaders and Laggards within MAGS

The PerfChart below shows year-to-date performance for the Mag7 stocks. SPY is up year-to-date, but MAGS is down around 2%. Four components are up with Nvidia (NVDA) and Alphabet (GOOGL) leading the way. Microsoft (MSFT), Tesla (TSLA) and Meta (META) are weighing with double digit declines in 2026.

The next chart shows performance since the late March low. MAGS is up 16.52%, and slightly lagging SPY (+17.25%). Again, we can see the same leaders and laggards. NVDA, AMZN, GOOGL and AAPL are outperforming with strong gains, while MSFT, TSLA and META are lagging with smaller gains.

These performance charts show that the Mag7 stocks are not one homogeneous group. They do not move in the same direction and are not positively correlated. This performance difference could make it difficult for MAGS to develop a sustained trend. 

MAGS Hits Moment of Truth

The next chart shows the Mag7 ETF (MAGS) with the 200-day SMA and price-relative (MAGS/RSP ratio). MAGS broke out in April and surged to new highs in May. It tested these highs in early June and then fell back to the 200-day SMA.

The blue shading marks the moment of truth for MAGS. A normal correction should end in this area and reverse (blue shading). Here we have the rising 200-day SMA, the 50% retracement and broken resistance, which turns into support. A return to the 200-day and the breakout is normal for a correction, while a 50% retracement represents one step backwards after two steps forward.

MAGS bounced off this level with a gap on Monday and then fell back. This pop-and-drop established a short-term resistance level to watch for follow through. A move above 67 would show follow through and trigger a short-term breakout.

Apple Corrects after Breakout Surge

The next chart shows Apple (AAPL) advancing into early December, forming a triangle into April and breaking out at the beginning of May. A triangle is a consolidation that takes its trading bias from the direction of the prior move, which was up. This makes it a bullish continuation pattern.

I don’t see a setup in Apple right now. The breakout zone and rising 200-day SMA mark support in the 265-280 area. A correction into this zone may provide an opportunity.

The other three leaders are setting up as they correct within their uptrends. The second part of this report continues on TrendInvestorPro (subscription). Note that TrendInvestorPro specializes in finding tradable pullbacks within leading uptrends.

Recent Reports and Videos at TrendInvestorPro

  • Breakouts in Tech, Semis, AI, Industrials & Defense
  • Biotech ETFs Set Up with Bullish Continuation Patterns
  • Healthcare Extends on Breakout as Breadth Improves
  • A Breadth Thrust for Utilities (plus Two Stocks)
  • Copper and Base Metals Set Up as Copper Miners Breakout
  • Click here to take a trial and gain full access.

Copper and Base Metals Set Up as Copper Miners Holds Breakout – Ag Breaks Out

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Bonds, precious metals and uranium are trending lower, while industrial metals and agriculture are trending higher. As a consequence, long and short term rates are trending higher, with the latter weighing on gold. Gold, silver and precious metals are in downtrends. Coppers and Base Metals are holding up relatively well with short-term setups working. The Copper Miners ETF remains with a triangle breakout and the DB Agriculture ETF surged off a key retracement. $IEF $UST10Y $GLD $SLV $UST2Y $CPER $DBB $COPX $SRUUF $DBA

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