On Monday, May 12, 2025, markets surged higher with a strong gap up, catching many traders off guard. While the S&P 500 and NASDAQ pushed through key VWAP and moving average resistance levels, confirming buyers remain in control, the Russell 2000 and semiconductors showed continued strength. Apple and Tesla extended higher on momentum, while biotech stocks rebounded from negative news, showing resilience near key support. Energy names also rallied, turning previously neutral setups bullish. Stocks like Robinhood, LFMD, and Rivian triggered profit-taking opportunities, while Grail and Cake became overextended after hitting daily R2 levels early. With such strength, short setups like TEAM failed to break down and were removed from watchlists. In this environment, traders are advised to avoid chasing, protect profits, and stick to disciplined risk management.
