Key facts
- Median short interest for S&P 500 stocks is at a 15-year high.
- Elevated short interest indicates a higher potential for short squeezes.
- Recent rallies in software stocks serve as an example of short squeezes.
The median short interest across S&P 500 stocks has climbed to its highest point in over 15 years. This trend suggests that a greater number of investors are betting against the market, which can also set the stage for significant short squeezes. The recent upward movement in software stocks has been cited as a demonstration of this phenomenon, where rising prices forced short sellers to buy back shares, further accelerating the rally.