Over the past six hours, NASDAQ futures have experienced two distinct phases. Initially, buyers pushed prices upward from a dip, but this upward momentum reversed as sellers emerged, driving the market below the session’s VWAP and the point of control. This indicates that the earlier rise was likely a temporary recovery rather than a prolonged increase.
Importance Of Market Levels
OrderFlow Intel combines live order flow data with market structure levels to provide insights into who controls the market. This method analyses actual transactions rather than relying solely on charts, offering insights into potential future moves. The bearish sentiment is prominent as long as prices stay below the VWAP, favouring sellers.
Traders are focusing on levels such as 23,862, 23,796, and 23,750. These points are likely to attract price movements and might initiate counter-moves due to pending buy orders. Traders already holding short positions may consider taking partial profits near these levels. A change in sentiment could occur if the price reclaims VWAP at 23,960, potentially altering the market outlook swiftly.
Based on the order flow today, August 14th, 2025, sellers have a clear upper hand as long as the Nasdaq remains below 23,960. The earlier rally seems to have run out of steam, suggesting it was a temporary relief bounce rather than a new upward trend. We see this as an opportunity for traders who are positioned for a market dip.
This bearish sentiment is amplified by the macroeconomic picture we’ve seen develop over the past two weeks. The July 2025 CPI report came in slightly hotter than expected at 3.4%, reigniting fears that the Federal Reserve’s fight against inflation isn’t over. This statistic gives a strong reason for the selling pressure we are currently observing in growth-sensitive tech stocks.
Furthermore, the latest jobs report from early August showed that hiring has started to slow down, creating concern about the economy’s strength. We believe this mix of sticky inflation and weakening growth is making the market nervous ahead of the Federal Reserve’s meetings in September. This is a classic setup for increased market volatility.
Trading Strategies In A Bearish Market
We have seen this kind of late-summer weakness before, as traders often reduce risk during this period. For example, looking back to the third quarter of 2023, the Nasdaq experienced a notable correction of over 10% after a very strong first half of the year. The current market action feels similar, suggesting traders should be cautious.
For those trading derivatives, this is a time to consider strategies that benefit from a drop or sideways movement. Buying put options on the Nasdaq 100 tracking ETFs could provide downside protection and profit potential if the index tests support levels like 23,862 and 23,750. This is a straightforward way to act on the current bearish view.
Another approach is to sell out-of-the-money call spreads, which allows you to collect premium while betting that the Nasdaq will not rally past a certain point. For futures traders, a short position is favored, but it is critical to watch the 23,960 level. If the market reclaims that price, it would invalidate the immediate bearish case.
