Record Equity Outflows - Caution Flag?

On the surface it seems the headline should be negative for stock prices when the amount of money flowing out of equity mutual funds and ETFs has reached a record. But, as you can see below, when outflows have reached these levels in the past (bottom pane), it has been followed by a strong upward, sustainable trend in US stock prices (top pane) soon thereafter.

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While there are no guarantees equity outflows won’t continue, it looks as if we may be setting up for a further push higher for US stocks.