Chart of the Day - Wednesday, March 5, 2025

Patrick Dunuwila
March 5, 2025

Chart of the Day


🏆 Today's Chart of the Day was shared by Dylan Tanen (@hihotraders). 
 

  • The Magnificent 7 ETF ($MAGS) closed below support at $50 yesterday while filling its post-election gap. However, it reclaimed support today, signifying a potential Failed Breakdown, or Bear Trap as it's also called.
     
  • Dylan reminds us that failed moves often lead to fast moves in the opposite direction, which, in this case, is higher. 
     
  • $MAGS represents nearly 30% of the S&P 500 and nearly 40% of the Nasdaq. If the largest stocks start to rebound, the major indices will likely follow. 
     

The Takeaway: The Magnificent 7 ETF ($MAGS) reclaimed support at $50 today after undercutting it yesterday. If $MAGS holds above $50, the bears are trapped. 

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