Flows are rotating into FRSH while ESE weakens

🇺🇸 Equities see a notable flow reversal today with outflows surpassing inflows, signaling a cautious tone. The dominant move is a sharp $283M exit from $ESE (ESCO Technologies Inc.), marking the largest single theme outflow, while inflows are led by FRSH with +$95M. This divergence underpins a shift away from the recent theme leadership, raising questions about the durability of the rally. The flow pattern confirms a broadening of the exit, with ESE, EMB, and IX all registering significant outflows, yet the inflow side remains concentrated around FRSH, MGY, and PEGA. The key test now is whether the FRSH-led inflow can sustain momentum or if the market continues to unwind, leaving the recent leadership behind. Watch for whether the inflow into FRSH holds next session as a gauge of underlying trader conviction.