The stock market is on weak footing as retail investors abandon the 'buy the dip' strategy and turn to higher yielding bonds

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• Retail investors are retreating from their "buy the dip" strategy, according to Vanda Research.
• That's bad news for the stock market as it removes a big pillar of support for stock prices.
• "This will make broad equity indices more susceptible to the whims of institutional investors," Vanda said.

Retail investors are starting to retreat from their "buy the dip" strategy, and that puts the stock market at risk, according to a Thursday note from Vanda Research.

After retail buying activity hit a historic peak in February, net purchase activity dropped below $1 billion per day in early March. Such a decline weakens a significant pillar of support for the stock market, according to Vanda, and that makes the market more susceptible to volatile swings.