Sentiment's turned decisively bullish out there. Bank of America's Bull & Bear Indicator just climbed 0.6 points higher over the past few trading sessions, now sitting at 8.5—that's firmly back in extreme bull territory.

What's actually being measured here? The positioning of hedge funds and institutional fund managers, plus you've got equity and bond flow patterns layered in, alongside broader market breadth signals. It's basically a cocktail of where smart money is putting capital and how orderly the rally looks underneath the surface.

When this indicator shoots up to those levels, it typically signals serious animal spirits driving the market forward.