Current data shows that retail investors in the US are gradually losing their trading fervor. This alone isn’t a cause for concern; the real warning sign is whether the pace at which institutional capital enters the market also starts to slow down afterward. Therefore, the key point to watch next is: after retail traders “step back,” can institutions successfully “take the baton”?

As long as ETFs continue to generate net inflows, corporate buybacks remain active, and the strength of institutional allocations does not diminish, the market will still have resilience. Only when these funding pillars begin to loosen as well does it mean the market’s foundation may be undergoing a substantive change.