⚠️US stock market liquidity is deteriorating:

S&P 500 E-mini top-of-book liquidity has fallen toward levels last seen during the April "Liberation Day" volatility event, with average depth now just above $2 million.

At the same time, US equity trading volumes remain elevated, creating a growing imbalance between market activity and available liquidity.

Lower liquidity means even modest buy or sell orders can have a larger impact on prices.

This increases the risk of exaggerated market moves, higher volatility, and sharper intraday swings.

As summer trading begins, thin liquidity could leave markets increasingly sensitive to unexpected news and large orders.

In other words, investors, especially institutions, now need less capital to move markets than under normal conditions.

Brace for more market volatility.