Such a divergence has never been seen in markets: The S&P 500's 3-month implied correlation is down to ~15.0%, the lowest on record. Implied correlation measures the extent to which stocks are expected to move in tandem, with a reading this low indicating significantly greater and independence among individual stocks within the index. At the same time, the 12-month implied correlation of the Nasdaq 100 is down to 25.5%, also an all-time low. This percentage has declined -35 points since 2022 and is well below the long-term average of 45.9%. This is consistent with a highly concentrated market environment dominated by a narrow group of large-cap technology stocks. Market leadership has rarely been this narrow.(The Kobeissi Letter)