Many analysts are still out there touting the great opportunity in the stocks.
For context, here are the top Holdings as of 04/14/2025
While there is some green as of today, the overall ETF is down close to 1% as of Tuesday’s close.
Nvidia (NASDAQ:) closed green with news of the company investing $500 billion in the USA. It will take 4 years to build out the AI infrastructure.
What can we expect from the MAGS right now?
A few interesting features on the daily chart
- The 50-DMA (blue) crossed below the 200-DMA (green). That is a death cross. MAGS enters the bear phase
- MAGS did not have a clean reversal bottom. On April 7th a new multi month low was established. The next day though, did not close above April 7th high nor was it an inside day.
- MAGS underperforms the benchmark (growth versus value risk off)
- The momentum has been bearish since late December 2024. Until the red dots clear the zero line and the 50-DMA (blue) then we still see issues on Real Motion.
Could MAGS rally to $49 or where the 2 overhead moving averages are?
Yes.
It would take close to over $50 to get excited about the prospects.
For now, the MAGS held last August’s low, which is positive.
We are watching for the ETF to at least clear $46, then $50.
Or should the $43 level fail, prepare for a lower move, perhaps to the $36.00 area.
ETF Summary
(Pivotal means short-term bullish above that level and bearish below)
S&P 500 (SPY) Watch 520-540 range
Russell 2000 (IWM) 180 pivotal-193 resistance
Dow (DIA) 400 pivotal
Nasdaq (QQQ) 440 support 468 resistance
Regional banks (KRE) 50 to clear
Semiconductors (SMH) 205 is a place to clear
Transportation (IYT) Must get back over 63-64
Biotechnology (IBB) 115 support 120 resistance
Retail (XRT) 64 key to hold. 69 resistance