# GEX and IV

The role of market gamma goes beyond mere classifications of 'bearish' or 'bullish'. While negative gamma is a reliable indicator of heightened realized volatility, historical data reveals that it predominantly characterizes deep market corrections and bear phases. The dots representing the market gamma status are determined at 3 a.m. EST, which is 6.5 hours prior to the market's opening.

<figure><img src="https://content.gitbook.com/content/G4P2NcvxCl7OpMaE4mWb/blobs/GAhDlTlErKu3Qou4aO6J/image.png" alt=""><figcaption><p>Credit: SpotGamma</p></figcaption></figure>