"We had a bad market day last week and INTC didn't crash. Care to say how that fits in with your theory?"
[And recently Intel went up for a week when the NASDAQ went down. Much to the distress of shorts who expected to apply the big beatdown after earnings regardless of the results. Dunno, has Mr. Market finally recognized the incredible strength of Intel's roadmap, fabrication and manufacturing capacity?]
I would apply my dividend arbitrage activity on both the up and down days. My dividend arbitrage theory answers why Intel has such a low BETA and does not match the market on up days and does not drop as much on down days. For the past year, someone or group has been increasing their short interest by nearly 1mil shares per day.
IMO, the shorting pattern has ended and there will some buyers and short interest that is dropping. That will lead to INTC having a strong RSI. The relative strength will even be enough for the chart watchers to mistakenly say OVERBOUGHT.