Track oversold and overbought sectors relative to SPY for mean reversion opportunities.
Relative Strength Screener
Track sector performance relative to SPY. When a sector significantly underperforms or outperforms the market, it often reverts.
Z-Score vs SPY: Measures relative performance deviation from 20-day average.
RSI: 14-day RSI. Below 30 = oversold, Above 70 = overbought.
Signal: OVERSOLD when Z < -1.5 AND RSI < 40. OVERBOUGHT when Z > 1.5 AND RSI > 60.