Range Holds After Gap-Down: Are Bulls Still in Control?
ES and NQ remain above key levels — but selling pressure is surfacing.
Market Context – May 21, 2025
The market is opening slightly red today, with ES gapping down around 0.2% and NQ following suit. Despite the pullback, both indices remain above their recent structural levels — ES holding 5900 and NQ above 21,320. Volatility ticked higher overnight, but buyers have stepped in so far to keep the range intact.
This is day two of digestion following Monday’s complete gap-fill rally. The recent highs near 5993 (ES) and 21,550 (NQ) continue to act as resistance. With volume fading and internals mixed, traders should stay flexible and patient while the market decides whether this is a continuation pattern or the start of a deeper pullback.
Key Levels to Watch
ES: 5900 (support), 5957 / 5976 (resistance)
NQ: 21,320 (support), 21,550 (resistance)
Bullish Scenario
If ES holds 5900 and builds above 5930, momentum could push back toward the upper resistance zone (5957–5976). NQ reclaiming 21,400 would signal strength in the tech-heavy tape.
Bearish Scenario
A breakdown under 5900 on ES or 21,300 on NQ could trigger a retest of deeper levels — possibly 5860 or lower. Watch for VWAP failures and weakness in leadership stocks as early signs.
Mindset Tip of the Day
Range-bound markets punish impatience. Let the structure develop — and don’t assume trend continuation without confirmation.
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