Flows are rotating into FRSH while ESE weakens

🇺🇸 Equities see a notable shift as outflows surpass inflows by a wide margin, signaling underlying caution despite some pockets of interest. The market experienced 159 active outflow clusters against 117 inflow clusters, with the largest exit concentrated in $ESE (ESCO Technologies Inc.), which shed $201M. Meanwhile, fresh buying emerged primarily in the theme FRSH, which attracted $63M, led by FRSH. This divergence suggests a cautious tone, with traders exiting ESE and EMB while selectively adding to themes like FRSH. The key next step is to confirm whether this flow pattern broadens into a more sustained rotation or remains a mostly one-sided move. Watch for whether inflows in FRSH and other themes can stabilize or if outflows in ESE and EMB deepen, indicating a potential shift in market sentiment.