It was one of the strongest Aprils for company guidance in the past 25 years, raising the bar for the rest of the earnings season.

Those who panicked have mostly returned to the market, which means the time to be aggressive is over.

A move to new highs isn't the positive indicator you might think it is, but market sentiment changes that.

Sentiment has changed, but the fundamental data has too. Both give similar signals ahead of earnings.

Investor sentiment doesn't just give signals for the overall stock market; it also signals how to trade ahead of earnings up to a week out.

Now that the downside target has been hit, we are seeing a shift in behavior.

Sentiment is now getting stretched, but guidance cuts are likely coming ahead of earnings season.

Sentiment has dropped to a point where we typically see a bounce, but it is just a bounce until shown otherwise.

The market has finally moved out of its trading range, but it is the "why" that matters. There's also been a change in the AI story.

Investor sentiment has dropped while the overall stock market has remained rangebound. This week's payroll numbers are unlikely to improve sentiment.