Is This the Calm Before a Bigger Storm?
Hello friends, and welcome back!
As we approach the Memorial Day weekend, the markets are showing signs that shouldn’t be ignored. On this May 21st, 2025, we’re diving into a handful of major charts—QQQ, top tech names like Apple, Microsoft, Nvidia, Amazon, and more.
You can catch the full video analysis over on our YouTube channel, and read all past market insights on our blog at AppleTree360.com.
QQQ: Bearish Engulfing + Volume Spike
Let’s start with QQQ. On the 4-hour extended-hours chart, today’s 12 PM candle flipped the script dramatically. What started as a promising bullish morning quickly turned into a bearish engulfing candle—on the highest volume in a month and a half. That’s a red flag.
Volume like this suggests institutional selling. When big money exits, it often leads to more downside. So, a short-term correction in QQQ seems very likely—and honestly, it could be healthy for the broader market in the long run.
VIX: Volatility Is Rising
Right in sync with QQQ, the VIX is spiking too. Rising volatility is a classic signal that investors are bracing for turbulence. Expect more swings in the coming sessions.
Top Stocks Breakdown
Apple (AAPL): Trend Reversal in Play
Apple tried to bounce earlier in May, and we even caught a good profit on that short-lived upside. But since failing to break the trendline, it’s been a series of lower highs and lower lows. If QQQ continues down, Apple could easily lose another 2–3%.
Microsoft (MSFT): Cracks Appearing
Microsoft was holding up better than most, but even this giant is showing signs of weakness. If we see a 4–5% correction, it could become a buying opportunity—but not just yet.
Nvidia (NVDA): Holding Better, But Not Immune
Compared to Apple, Nvidia is relatively stronger, but even here, late-day selling is showing up. We’re seeing signs of distribution, not accumulation.
Amazon (AMZN): Doji Day, But Downtrend Intact
If momentum continues downward, we’re eyeing the $195 area—a level we’ve highlighted before.
Meta (META): Eyes on $595–$600
Not much change in Meta—it’s slowly grinding down. If the market remains soft, keep your focus on the $595–$600 range as potential bounce zones.
Google (GOOGL): Relative Strength Leader
Google is one of the few showing resilience. While it closed weak with the broader market, its early-session bullishness and recent structure suggest that if any stock is poised to lead a rebound, it’s Google. Watch for a break above $173.
Tesla (TSLA): Breakdown Confirmed
Tesla is clearly struggling. That midday candle wiped out bullish hopes. Without a strong reversal soon, we could be headed for much lower levels.
Looking Ahead: Volume Drops, Caution Rises
With the long Memorial Day weekend just ahead and only a couple trading sessions left this week, expect lower volume and choppy action. Markets are already showing early signs of a pullback that could continue into early next week.
Best strategy? If you’ve had a good run recently, consider taking some time off. There’s no need to force trades going into a low-volume environment. Enjoy the weekend, reset, and come back with a fresh outlook.
Check out the full breakdown on YouTube
📺 ApplTree360 YouTube Channel
Read more updates on our blog
📝 https://appletree360.com
Until next time,
Happy trading—and enjoy the long weekend!
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