Short-Term, High-Probability Mean-Reversion Indicator: Historical Seasonal Trend Holds True

Andrew Crowder submits:

The seasonal bullishness that occurs the day before Thanksgiving held true again this year as the S&P advanced 1.5% on low volume. The day after Thanksgiving also is bullish, but as I mentioned in earlier posts the next two days, which would be Monday and Tuesday of next week, are overwhelmingly bullish on a seasonal basis.

Currently, Retail (RTH) and Semiconductors (SMH) are the only two sectors that are displaying an overbought reading, but neither have an RSI (2) that is even above 90. Preferably, I like to see a reading above 95 before I will seriously consider stepping into a trade in the High-Probability, Mean-Reversion Strategy.