Market liquidity is collapsing amid the Iran war: Liquidity in S&P 500 futures is down to just $5.1 million, near the lowest since the April 2025 "Liberation Day." Top-of-book depth has fallen -80% since the start of the year and is now -61% below the historical average of ~$13 million. Levels below $7 million usually signal market stress, according to Goldman Sachs. This means it now takes just a few million Dollars in orders to move the S&P 500 by one tick. To put this differently, every time an institution tries to buy or sell in size, the impact on the market price is now much larger than during normal market conditions. Brace for more market volatility.(The Kobeissi Letter)