!!️US stock market short-sellers are capitulating

Is this another contrarian indicator against the bullish momentum of the last two years?

January 28, 2025

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Short interest on the S&P 500 ETF, $SPY, has declined to ~100 million shares, the lowest level on record.

As a % of shares outstanding short interest has dropped to ~8%, one of the lowest readings in over a decade. A similar trend has happened to the Nasdaq 100 ETF, $QQQ.

This comes at a time when almost everybody is long and the sentiment is euphoric.

In other words, investors’ complacency has rarely been greater. Such data suggests much sharper market moves historically in case of some adverse events.

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