Are The Mag 7 Looking To Lead The Market Again?

---

While over the last several months, as the market has been coming to grips with likelihood of a higher Fed Funds rate and the reality of higher long-term rates, the ETF for the Mag 7 has been improving its technical condition.

On Thursday, MAGS broke out of a multi-month consolidation. The breakout didn’t hit all-time highs, but the pattern is capable of sending the chart much higher than the current all-time high.

Friday’s retracement is not the follow though the bulls would have liked to see, but the technical condition as represented by the MarketGauge’s PRIME Ratings shown in the chart below are as strong as they’ve been since 2025.

Click here to get an interactive chart of MAGS

 

Looking Under The Hood of MAGS

All of the Mag 7 have a big part in the AI transformation, but in quite different ways.

Additionally, in the past they have become a popular destination for investors during periods of tightening monetary policy.

The MAGS chart looks strong, however, when you look at look each component individually their charts are very different.

Starting with the numbers...

As you can see from the table above, their trends (Phases) range from bullish to bearish. The PRIME ratings vary widely, and their location relative to their July Calendar Ranges include both above and below.

 

NVDA
Nvidia spent August consolidating on top of another consolidation zone, and looks like it’s ready to run.

Click here for an interactive chart

 

MSFT
2026 was a rough year for MSFT until its latest earnings report recued it. The stock has continued to rally and sits about 10% below its all-time highs.

Click here for an interactive chart

 

AAPL

After gapping down in response to its earnings announcement it held firm at the 50 DMA and climbed back to the July Calendar Range high and the low of the day before it gapped down. If it can clear the calendar range high it will be in good shape to continue higher with it new CEO now at the helm.

Click to get an interactive chart

 

META
Meta has been in a strong bearish trend, not only in price but also in other PRIME factors as demonstrated by its bearish PRIME ribbon indicator. Until it demonstrates an ability to hold above the 200-day MA, it’s hard to count on it for upside. On the other hand, it has a strong base below it.

Click here for an interactive chart

 

TSLA

Click here for an interactive chart

 

AMZN

PRIME indicators suggest the dip is one to buy if it rallies over $267

Click here for an interactive chart

 

GOOGL

It’s compressing between 200-day MA support and Calendar Range Low resistance.

Click here for an interactive chart

 

On balance NVDA, MSFT and AAPL look as good as MAGS, TSLA and META are still pretty bearish while AMZN, and GOOGLE could shape up quickly if they rally.

Keep an eye on these old favorites. They’re not going away.

 

If you'd like access to the MarketGauge indicators, strategies, automated trading models, and more, contact us.

• For individual traders or those who want access to professional-grade models: marketgauge.com/call, and ask Rob how to join our Active Investing Edge program
• If you’re an asset manager or RIA seeking algorithmic systems: email Ben at [email protected]
• Use Big View (a lot of it is free!)

Have a great week!

Geoff Bysshe
Co-Founder
MarketGauge.com

 

---

 

Every week we review the big picture of the market's technical condition as seen through the lens of our Big View data charts. The bullets provide a quick summary organized by conditions we see as being risk-on, risk-off, or neutral.  The video analysis dives deeper.

---

Summary: The overall picture remains cautiously risk-on, supported by bullish major-index phases, strong foreign equities, low volatility, improving risk gauges, and Bitcoin holding near its highs. However, weakening breadth and market internals, deteriorating Modern Family participation, bond-market pressure, and unfavorable September seasonality argue for selective equity exposure rather than aggressively adding risk. 

Risk On

• Markets were mixed with the SPY, QQQ, and IWM only up marginally and DIW down. SPY, QQQ, DIA are in bullish phases. Real Motion is weak across the board with the exception of the SPY ondaily charts but weekly momentum intact.. (+)
• Risk gauges improved to 80%. (-)
• Volatility trading at its lowest levels since Decemeber 2025. Some concern with markets showing weakening breadth. (+)
• Value and Growth remain in bull phases with growth showing a little more short-term momentum than value. (+)
• Foreign equities, led by emerging markets, looks quite strong and showing good relative strength to U.S. markets and led by commodity sensitive and technology-related trends. (+)
• Bitcoin continues to hold its recent highs, above its 200 and 50-Day Moving Averages. (+)

Neutral

• Volume patterns improved marginally with about equal distribution days vs accumulation days over the last couple weeks. (=)
• The modern family is starting to show some cracks, with 5 of the six members losing their bull phases. Biotech is holding onto a strong lead over its 50-Day Moving Average and semiconductors looks like it's recovering. (=)
• Soft commodities got a bit overbought and are showing potential mean reversion or flagging action. Copper is showing some compression around its highs for 2026. (=)
• Gold closed right on its 50-Week Moving Average and still digesting its recent moves. If it regains its 200 and 10 Day Moving Averages, we could see another move testing its highs. (=)
• Sectors were a neutral, with Semiconductors and biotech up, though consumer discretionary took a hit. (=)

Risk Off

• Market internals weakened across the board with the up down volume ratio, McClellan Oscillator and Cumulative Advance Declines all below their mid-points, despite the market being up marginally. (-)
• The 52-Week new high new low ratio moving averages continue to trend lower. (-)
• Bonds are one of the major concerns with the 7-10 year getting hit hard. (-)
• Seasonal trends historically point to a weak September. (-)
• The color charts (moving average of stocks above key moving averages) are showing weakness almost across the board with even the 200-Day relationships weakening. (-)

 

---

Actionable Trading Plan

Maintain moderate equity exposure, but avoid aggressively adding risk while breadth, Real Motion, and market internals remain weak. Favor SPY, selective growth, emerging markets, semiconductors, and biotech; add only when price strength is confirmed by improving momentum and participation, while trimming consumer discretionary and other weakening positions. Keep stops tight, consider inexpensive hedges while volatility is low, avoid chasing overbought commodities, and treat a further deterioration in breadth or a break of key index support as a signal to reduce exposure and raise cash.

 

---

Keith's Weekly Market Analysis Video