An improved and novel fabrication method for a magnetic element, and more particularly a magnetic element (10) including a first electrode (14), a second electrode (18) and a spacer layer (16). The first electrode (14) includes a fixed ferromagnetic layer (26) having a thickness t.sub.1. A second electrode (18) is included and comprises a free ferromagnetic layer (28) having a thickness t.sub.2. A spacer layer (16) is located between the fixed ferromagnetic layer (26) and the free ferromagnetic (28) layer, the spacer layer (16) having a thickness t.sub.3, where 0.25t.sub.3