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Patrick Dunuwila

Chart of the Day - Thursday, August 21, 2025

August 21, 2025


🏆 Today's Chart of the Day was shared by Larry Thompson (@HostileCharts).
 

  • The Magnificent 7 ($MAGS) closed lower for a fifth straight day, yet it’s only -3.7% off record highs. Another down day tomorrow would tie for its longest losing streak since the fund was launched in 2023.
     
  • $MAGS logged its first record high of the year at the end of July, breaking out of a seven-month base by clearing its December peak of $56–$58. If Former resistance doesn't act as support here, it will mark a Failed Breakout.
     
  • With these seven stocks comprising roughly one-third of the S&P 500, a Failed Breakout would weigh on the broader market. Below $56, Larry highlights potential support near $52, where the 200-day moving average and the AVWAP from April’s lows converge.
     
The Takeaway: The Magnificent 7 ($MAGS) is revisiting the breakout level at $56–$58. This former resistance level should act as support, but a breakdown would target $52 and weigh on the broader market.
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