For the past few months seasonality and overbought/oversold indicators have worked very well. By late this week both will turn into a positive for the market.
Seasonality is currently negative but will turn slightly positive next week for the turn of the month. The chart below is from CXO Advisory Group.I highlighted the current period with a red arrow and next week is highlighted with a green arrow.
I use the 10 day moving average of the NYSE Advance - Decline line to measure if the market is oversold. A good oversold reading is reached when the moving average is set to drop a long string of negative numbers. Below are the numbers this indicator will be dropping for the next ten trading days. Starting Friday we will be dropping negative numbers for 5 out of 7 days, with 4 being quite large. This will give us decent oversold reading later this week.