Another up day with the Dow Jones up 10 points (0.06%) and the Nasday up 22 points (0.55%).
The stock market continues to oscillate within a very tight trading range. Driving both bulls and bear up the wall.
Short Interest S&P Chart below (courtesy of ZeroHedge) gives us yet another perspective on today’s market. While most market practitioners believe large short interest in the market will eventually lead to a strong rally (aka short squeeze), quite the opposite is true.
As the chart below shows, instead of causing rallies, “smart” short interest established at the right time eventually breaks the market. Today’s short position on the S&P is more or less where it was at 2007 top. Suggesting that the market might be ready to break, just as it did back than.
The real question is, are the short-sellers (typically more intelligent or better researched investors) right or wrong this time? Will the market break or will we see a massive short squeeze? Something tells me we are about to find out.
Longer term, my work shows a severe bear market between 2014-2017. When it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning exactly when the bear market will start (to the day) and its subsequent internal composition, please CLICK HERE
(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. May 21st, 2014. InvestWithAlex.com
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