Institutional investors are once again reducing their stock exposure: Non-dealer net positioning in S&P 500 futures has fallen to its lowest level in 14 months, per CFTC data. Since November 2024, asset managers, leveraged funds, and other investors' net positioning is down ~50%. Additionally, the funding spread measuring institutional demand for long stock exposure through futures, options, and swaps resumed its decline after a brief jump in May. This comes despite the market’s rapid recovery over the last 2 months. The gap between retail and institutional sentiment is widening.