Recent sentiment surveys indicate a notable shift in investor behavior, with bearish sentiment reaching its highest level since October 2023. According to the AAII sentiment survey, 47.3% of investors are now bearish on US stocks, a significant increase of 18 percentage points over the past three weeks. This trend mirrors previous market corrections, suggesting a potential turning point. In contrast, retail investors have shown increased enthusiasm, purchasing a record $12 billion in equities during the first week of February, with approximately 70% of these investments directed towards the so-called 'Magnificent 7' stocks. Hedge funds also exhibited a reversal in strategy, becoming net buyers of US equities for five consecutive days last week, marking the fastest pace of buying since November 2024, after a prior five-week streak of selling. Overall, while bearish sentiment has surged, the market's response has been mixed, with the S&P 500 showing strong returns during periods of negative sentiment, reflecting a complex and evolving market landscape.