Flows are rotating into FRSH while ESE weakens

🇺🇸 Equities are seeing a notable flow reversal with outflows now outweighing inflows for the first time in recent sessions, signaling a cautious tone. Despite a total of 186 outflows compared to 86 inflows, the key driver remains the $ESE (ESCO Technologies Inc.) theme, which has shed $30M, indicating a clear retreat from this leader. Conversely, the FRSH theme has attracted the largest bid with a $26M inflow, suggesting some rotation into fresher names. This shift underscores a potential pause or early rotation away from previously favored sectors. The next critical step is whether inflows into FRSH hold above $26M, confirming renewed interest in this theme. Traders should watch if other leaders follow suit or if the outflow pressure from ESE persists, which could signal broader risk aversion.