Institutions buy $4.1 billion in US equities as retail sells $2.2 billion

The Kobeissi Letter said institutional investors bought $4.1 billion in US equities during the week ending September 18. This was their third weekly purchase in the past four weeks. Their four-week average reached $2.9 billion. Hedge funds added $1.2 billion in purchases during the same period. Their four-week average reached $1.6 billion in net purchases. Retail investors sold $2.2 billion. Retail investors recorded their eighth consecutive week of outflows. Their four-week average weekly outflow was $1.9 billion. The Russell 2000 ETF recorded $3.3 billion in outflows last week. This was its second-largest weekly outflow this year. It was also the ETF's third-largest weekly withdrawal in nine years. The S&P 500 outperformed the Russell 2000 for five consecutive weeks. The streak could extend to six weeks. That would be the longest period of S&P 500 outperformance over small-cap stocks in eight years. The Russell 2000 has declined 7.3% since mid-August. It reached its lowest level since June 10. The ratio of the Russell 2000 to the Nasdaq 100 fell to 0.09. That was its lowest level on record. The Kobeissi Letter said small-cap stocks are struggling as rates move higher.