The Magnificent Seven ETF (MAGS) is designed to track seven large US technology and growth stocks, giving concentrated exposure to that cohort. Price action since launch has produced pronounced trending legs and corrective swings, making the fund a candidate for Elliott Wave mapping across medium-term timeframes.
On the weekly count, the advance from the all-time low concluded wave (I) at $58.69 in December 2024, before wave (II) fell to $39 in April 2025. The ensuing wave (III) lift carried to $69.14 to finish wave I, then wave II retraced to $55.09 and set up the next push higher in wave III, where wave ((1)) of III peaked at $71.16; a wave ((2)) pullback is anticipated as a flat correction from the March 30, 2026 low. The daily view mirrors that structure: wave I topped at $69.14, wave II based at $55.04, and wave ((1)) of III reached $71.16 before the ongoing wave ((2)) consolidation.
Current Market Correction and Near-Term Strategies
Based on the current structure of the Magnificent Seven ETF (MAGS), we see the recent peak at $71.16 as the end of a short-term upward cycle. A temporary pullback or sideways correction is now underway. We are viewing this period not as a reversal, but as an opportunity to prepare for the next significant rally.
This short-term caution is reinforced by recent market data, as the latest Consumer Price Index report for May 2026 showed inflation holding steady, prompting some profit-taking in high-growth names. The CBOE Volatility Index, or VIX, has also edged up to 18 from its recent lows, suggesting some market uncertainty is being priced in for the coming weeks. This environment supports the view of a corrective phase before the primary uptrend continues.
For the immediate future, we are considering strategies that benefit from a slight decline or consolidation in MAGS. This could involve buying short-dated put options or selling call credit spreads with strike prices above the recent $71 peak. These positions would capitalize on the expected temporary weakness as the ETF completes its corrective pattern.
Positioning for the Next Major Upswing
However, the primary opportunity we are positioning for is the much larger upward move expected to follow this pullback. Fundamentally, the outlook for the underlying companies remains exceptionally strong, with consensus estimates projecting over 20% aggregate revenue growth for the group through the end of 2026, largely driven by AI-related spending. This fundamental power is why we anticipate the subsequent rally will be substantial.
Therefore, we are closely watching for technical signals that the pullback is bottoming out to initiate bullish positions. Our preferred strategies will be buying call options with expirations in late 2026 or selling out-of-the-money put credit spreads to collect premium while defining our risk. This approach mirrors historical patterns where brief consolidations in tech leadership have preceded powerful, extended rallies.
