Significant ETF Outflow Signals Possible Stock Pressure

A notable week-over-week outflow of $213.2 million from Direxion Daily S&P 500 Bull 3X (SPXL), represents a 6.8% decrease. This may lead to selling pressure on underlying stocks like Thermo Fisher and Danaher.

Date: 07-04-2025

AI Rating: 5

Potential Impact on Stock Prices
The reported outflow of approximately $213.2 million from the Direxion Daily S&P 500 Bull 3X (SPXL) ETF indicates a notable decrease in investor confidence and can lead to considerable selling pressure on its underlying components. With SPXL experiencing a 6.8% decline in shares outstanding, it signals a potential bearish sentiment in the market.

The ETF's notable underlying stocks, including Thermo Fisher Scientific Inc (TMO), Danaher Corp (DHR), and Bristol Myers Squibb Co. (BMY), have all recorded declines of 1%, 0.8%, and 2.8%, respectively. These declines suggest that investors are either reallocating assets or anticipating market volatility, potentially causing difficulties for these companies in maintaining stable price levels.

Technical Analysis
The one-year price performance chart indicates that SPXL has a 52-week range with a low of $87.08 and a high of $190.34, with the last traded price at $99.99. Given the substantial outflow and the stock's current position relative to its 200-day moving average, short-term investors may perceive this as a bearish signal. If the ETF continues to see outflows, it may lead to further declines in its underlying stocks, impacting their respective performance metrics negatively.

The ETF market's dynamics suggest that its activities can affect the underlying equity market, particularly for the highlighted stocks. Therefore, professional investors should remain vigilant regarding these outflows and examine whether they precipitate broader sell-offs in associated equities.

Stocks: TMO DHR BMY