It was the second-best May for earnings guidance in the past 25 years, which tells us where we are in the cycle and aligns with current investor sentiment.

Sentiment continued to fall despite stock prices holding strong, which is rare, but the fundamental data continue to support higher earnings estimates.

Sentiment data suggest investors are preparing to sell in May and go away.

Earnings have been strong this earnings season, and not just for Technology, which should eventually result in strength outside of Technology.

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.