Flows are rotating into Utilities & Communications Cohort while Cross-Sector Defensive Cohort weakens

🇪🇺 A clear flow reversal is underway as defensive themes dominate the market today, but the broad confirmation remains fragile. Outflows from Cross-Sector Defensive stocks hit $52.65 billion, led by $SHB-A-ST, signaling a significant retreat from the most conservative corners. Meanwhile, utilities and communications cohorts are seeing robust inflows, with NTGY-MC attracting $43.41 billion. This inflow confirms a shift toward sector-specific safety bets, but the overall market breadth remains limited with only 20 inflows versus 23 outflows. What matters next is whether this defensive rotation broadens beyond the top leaders. The concentrated inflows and outflows suggest traders are still mostly repositioning within a narrow set of names, not yet shifting decisively into a new market trend. Watch for signs of wider participation - if inflows expand across more themes or if the outflows from defensive segments accelerate, the flow shift could signal a more durable change in market sentiment. Until then, expect continued choppiness as traders test the durability of this defensive bid.