Low Level of Short Interest in SPY is Negative for Stock Market
Low Level of Short Interest in SPY is Negative for Stock Market. The short interest in the S&P 500 ETF (SPY), which tracks the S&P 500, is at its lowest level in two years (see chart). That means many investors who use this this instrument to hedge against a market drop, have lost all fear of a downturn and see the market as continuing to move up. Historically, that’s usually a contrarian indicator that there’s trouble ahead for stocks.