S&P 500: Dispersion Unwind Risks Rise as CPI and Liquidity Pressures Loom

The S&P 500 fell 2.6% on Friday, breaking below its 20-day moving average for the first time since early April. Despite the decline, implied correlation remains historically low at 12.2, suggesting dispersion trade unwinding may continue. Semiconductor volatility remains elevated, and systematic funds appear to be reducing exposure. Upcoming CPI data and potential major IPOs (SpaceX, Meta) could create additional liquidity pressures, though Treasury paydowns may provide some support for Bitcoin.