Keeping in mind that an overbought or oversold condition can last for longer than seems rational, some pair trades and even some straight up old fashioned directional bets have been percolating [festering? -ed] in the back of my mind for a week now.
From Bespoke Investment Group:
The S&P 500 Financial sector is now 28.5% above its 50-day moving average. Below we highlight the historical 50-day moving average % spread for the sector going back to 1990 (as far back as daily sector pricing goes). As shown, just as the sector hit extremes on the oversold side in recent months, we've now hit extremes never seen before on the overbought side.