**Bearish Roadmap** The bearish roadmap highlights two important levels: 6709.25 to 6691.25, which include VWAP and liquidity pools. For a bullish outlook, key levels are identified at 6717.75 to 6729.5. VWAP acts as a fair value benchmark, while Value Areas mark significant past trading zones that guide trading strategies. In the broader market, the S&P 500 mirrors global trends, showing stable movements in the EUR and volatile trading in cryptocurrencies. Effective trade strategies involve securing profits and managing stops to maximize gains and minimize risks. Since the market is trading below 6713, there is a clear bearish bias for derivative traders. In the short term, strategies should focus on profiting from a move towards the 6705.25 and 6702.75 targets. This might involve buying puts or opening short futures positions, using the 6716 level as a stop-loss point. However, it’s important to view this within the context of a strong bull market, with the S&P 500 rising over 16% in 2025 alone. This current weakness could just be a temporary pause or small correction. Any significant dip might offer a buying opportunity for long-term positions. **Economic Data & Market Volatility** The market’s hesitation makes sense considering recent economic data. The latest Consumer Price Index for August 2025 showed inflation steady at 3.4%, slightly above expectations, complicating the Federal Reserve’s decisions. With an upcoming FOMC meeting, many traders are waiting for clearer guidance on interest rates. Adding to the uncertainty, the CBOE Volatility Index (VIX) has risen from its lows and is now around 16. This indicates an increase in options premiums and reflects growing caution. Additionally, the cryptocurrency market crash suggests a falling risk appetite among speculators. In the coming week, traders might want to prepare for uncertainty using options. If prices stay below 6713, buying puts with near-term expirations could capture potential downward momentum. On the other hand, if buyers reclaim the 6716 level, it could indicate a continuation of the bull trend, making call options appealing. Looking ahead to the next few weeks, we should watch for potential support around the lower target of 6663. We experienced a similar consolidation in the fourth quarter of 2024 before the market made a strong advance this year. If support holds, selling put spreads below the market could be a smart way to gather premium while getting ready for the next upward move. Create your live VT Markets account and start trading now.

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