In a “negative gamma” environment, this deviation means market makers cannot provide liquidity support — instead, they become accelerants to the decline. They must continuously sell positions to hedge their exposure to put options.

The put/call ratio has reached 1.95. This mechanism acts like an amplifier, intensifying downside moves. That’s why once the key level breaks, the VIX can quickly surge toward 30. Unless the index reclaims 6,800, this self-reinforcing downside pressure will continue to hang over the market.

# Is the Rebound a Dead Cat Bounce?

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