$DSPX Dispersion Trade Collapse 08/06/26

$DSPX The wheels are finally coming off the Dispersion Trade.

- Lowest monthly low today since topping.
- Second major breakdown leg.

A weakening dispersion trade means stock correlations rise. As more names move together, diversification inside the index disappears, making

SPY 0.00%↑ / $SPX far more sensitive to selling pressure.

Translation: expect larger major in…