In the last six hours, NASDAQ futures have gone through two different phases. First, buyers drove prices up from a dip. However, this rise quickly reversed when sellers stepped in, pushing the market below the session’s VWAP (Volume Weighted Average Price) and the point of control. This suggests that the earlier increase was just a short-lived recovery, not the beginning of a prolonged rally.

Importance Of Market Levels

OrderFlow Intel uses real-time order flow data along with market structure levels to reveal who is in charge of the market. This approach looks at actual trades instead of just charts, providing hints about possible future moves. The bearish mood remains as long as prices stay below the VWAP, benefiting sellers. Traders are paying attention to key levels like 23,862, 23,796, and 23,750. These numbers are likely to influence price movements and could trigger counter-moves due to outstanding buy orders. Those already short might think about taking partial profits near these levels. If the price gets back above the VWAP at 23,960, it could quickly change the market outlook. On August 14th, 2025, today’s order flow clearly shows sellers are in control as long as the Nasdaq stays under 23,960. The previous rally seems to be losing momentum, indicating it was just a brief bounce rather than the start of a new upward trend. This situation presents an opportunity for traders expecting the market to dip. This bearish sentiment is further supported by the economic landscape we’ve seen shape up over the last two weeks. The CPI report for July 2025 was slightly higher than expected at 3.4%, raising concerns that the Federal Reserve’s battle against inflation is not finished. This data strongly contributes to the selling pressure we see in growth-sensitive tech stocks. Additionally, the recent jobs report from early August signaled a slowdown in hiring, raising doubts about the economy’s health. We think this mix of persistent inflation and weakening growth is making the market anxious ahead of the Federal Reserve’s September meetings. This scenario typically leads to heightened market volatility.

Trading Strategies In A Bearish Market

We have seen similar late-summer weakness before, as traders often reduce risk during this time. For instance, in the third quarter of 2023, the Nasdaq experienced a significant correction of over 10% after a strong first half. The current market dynamics feel familiar, suggesting that traders should proceed cautiously. For those trading derivatives, it may be a good time to explore strategies that profit from price declines or sideways movement. Buying put options on Nasdaq 100 tracking ETFs could offer downside protection and profit opportunities if the index tests support levels like 23,862 and 23,750. This is a simple way to act on the current bearish outlook. Another strategy is to sell out-of-the-money call spreads, allowing you to collect premiums while betting that the Nasdaq won’t rise past a certain level. For futures traders, taking a short position is recommended, but watching the 23,960 mark is crucial. If the market surpasses this price, it would negate the immediate bearish outlook. Create your live VT Markets account and start trading now.

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