After a shaky start, NASDAQ futures have fallen back under the control of sellers. An early rally that pushed prices higher didn’t last long, as sellers regained their strength. During the initial rise, strong buying showed that institutional players were active. Yet, this rally struggled at a double top resistance point, where sellers made a strong reentry.

Understanding Cumulative Delta

Even as the market bounced back, the Cumulative Delta stayed negative. This showed that the buying was mainly short covering rather than a genuine reversal, leading to a lower double top and another decline. OrderFlow Intel analyzes metrics like Delta to tell the difference between real demand and short covering. It also uses AI to help traders see when actual control changes in the market. For traders, spotting real trend changes is key for making decisions. Even with strong intraday bounces, it’s crucial to confirm if control has shifted since sellers have shown they are still in command today. InvestingLive.com uses AI-driven OrderFlow Intel to provide market context beyond just levels and setups. The key levels to observe now are 23,088 and the round figure 23,000, which act as downside targets. The inability of buyers to sustain the morning rally confirms our view that sellers remain in control of the NASDAQ. Although there was a quick bounce from the 23,000 level, we identified this move as short covering rather than new, committed buying. This is a typical sign of a weak market where bounces should be seen as selling opportunities. This technical weakness comes as we digest newly released economic data. The August 2025 CPI report from last week showed core inflation unexpectedly rising to 3.8%, dampening hopes for further rate cuts this year. This macro pressure backs up the seller-dominated order flow we’re currently witnessing.

Trading Strategies in a Bearish Market

In the upcoming weeks, derivative traders might look to use brief rallies toward resistance, like the one around 23,282, to initiate bearish positions. Strategies such as buying puts or creating bear call spreads could work well in this environment. The aim is to take advantage of the ongoing downward pressure, not to chase temporary bounces. Market sentiment indicators align with this cautious approach. We’ve seen the VIX index, which indicates expected volatility, rise above 20, a level it hasn’t consistently stayed above since spring 2025. Additionally, the equity put-to-call ratio has increased to 0.85, highlighting a clear preference for downside protection among traders. This trading pattern resembles market conditions from the fall of 2022 when every rally faced heavy selling pressure due to hawkish central bank policies. We seem to be entering a similar stage where prices are capped, and sellers act quickly. As a result, we’re closely monitoring the 23,000 level. A sustained drop below this psychological support could likely spark a new wave of systematic selling. Until buyers can show they can absorb supply and push the cumulative delta positive, any signs of strength should be viewed skeptically. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now