Gains will be harder to come by in the near-term, says Bespoke's Paul Hickey

Market Sentiment & Earnings Season Outlook - The market's expectation for earnings is high, potentially leading to a moderate selloff with initial results [1][3][4] - Analyst sentiment has shifted, with more raising estimates than lowering them, which is uncommon before earnings season and sets a higher bar [3] - Historically, the period starting tomorrow is the weakest three-month period for the market [3] Sector Analysis & Financials - Tech, financials, industrials, materials, and communication services have seen more positive analyst sentiment than negative, setting a higher bar for these sectors [5] - Financials are performing well this year, potentially outperforming tech, driven by a more benign regulatory backdrop and potential increase in deal activity [6][7][8] - Goldman Sachs has experienced one of its strongest periods between earnings reports since its IPO, indicating a significant rally [9] Potential Risks & Signs of Froth - Rallying micro-cap stocks are seen as a sign of exuberance and potential over-extension in the market [4] - Tariffs were a major concern in April, but sentiment has shifted, potentially leading to overconfidence [2][3]