Roundhill Magnificent Seven ETF (MAGS) gives equal‑weight exposure to seven US technology firms: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. It launched in April 2023.
On the weekly Elliott Wave view, the rise from the all‑time low ended as wave (I) at $58.69 in December 2024. This move took the form of a five‑wave impulse.
Weekly Elliott Wave Roadmap
A wave (II) decline then followed, reaching $39 in April 2025. From there, price moved up in wave (III) as a nested sequence and completed wave I at $69.14.
The analysis says MAGS is now trading in a pullback that aims to correct the move from the April 2025 low. It is described as a 3‑, 7‑, or 11‑swing pattern before another push higher.
On the daily view, the move up from April 2025 also ended at $69.14 as wave I. Wave II is labelled as a double‑three correction, with wave ((W)) ending at $60.13 and wave ((X)) now developing after the October 29, 2025 high.
The $39 level is marked as the key pivot. The pullback is expected to seek support via a 7‑swing sequence.
Strategy And Risk Considerations
We are looking at the Elliott Wave structure that was projected late last year, which suggested the Magnificent Seven ETF (MAGS) was due for a correction after its peak at $69.14. This analysis anticipated a pullback to correct the strong rally from the April 2025 low of $39. The expected corrective pattern was a complex, multi-swing move before the primary uptrend would resume.
In the months since that analysis, we have seen this correction play out, with MAGS declining through the fourth quarter of 2025 and finding a temporary floor near $56 in January 2026. This move was amplified by the Federal Reserve’s unexpectedly hawkish stance in December 2025, when they signaled fewer rate cuts for 2026 than the market had priced in, a situation reminiscent of the market jitters seen throughout 2023. As of today, February 23, 2026, the ETF is hovering around $59 after a weak bounce.
For the coming weeks, this suggests a defensive or bearishly biased stance is warranted, as the corrective wave ((X)) rally may be complete, setting up another potential leg down. Traders could consider buying April 2026 expiration puts with strike prices around $57, anticipating a retest of the January lows. This position would profit from a decline in the MAGS price before the expected long-term trend resumes.
Volatility has also ticked up, with the VIX now trading near 19, up from an average of 14 in the second half of 2025. This elevated volatility makes buying options more expensive but also indicates market uncertainty, which aligns with the final phase of a correction. For those anticipating a sharp move but unsure of the direction, a long straddle using at-the-money options could capture a breakout from the current range.
On the other hand, the original analysis maintains a long-term bullish view as long as the pivot at the $39 low from April 2025 holds. Traders who share this conviction might consider selling cash-secured puts with strike prices well below the current market, such as the May 2026 $52.50 puts. This strategy allows one to collect premium now, with the intention of acquiring MAGS shares at a significant discount if the correction deepens more than anticipated.
Hedging existing long-term positions in big tech also seems prudent given the current setup. Recently, reports have surfaced about increased regulatory scrutiny on two of the ETF’s largest components, which adds a layer of headline risk. Purchasing protective puts that expire in late spring can provide effective, low-cost insurance against a sudden market downturn fueled by such news.
