Market: IV Drop Confirms Bearish Setup

Market pullback accelerates as implied volatility across major maturities drops sharply, confirming the market now prices in persistently low volatility after the July rally stalled into a seesaw battle. The three-month IV trend reveals a sharp early-June decline that briefly lifted readings before the current collapse, underscoring how IV functions as a fear index that spikes on rapid drops and collapses once selling pauses. Rising put trading volume paired with this low-IV regime matches classic bear-market traits that a single bullish candle will not reverse, making the current window ideal for selling calls until two strong bullish candles appear.