For individual stocks high short interest has never been a good indicator of upside, quite the opposite. So if a lot of individual stocks are attracting high short interest, which may be the driver of the totals, then I wouldn't consider it exactly good news. However even the total numbers, in relation to the market outstanding float are miniscule. But that statement that I made comes mostly from reading a lot of different mesage boards, where bears have been in a state of depression borderline capitulation during this run up. Beleive me, not many have caught this drop. And bulls have been complacent for years.
Bearmove. In my opinion short interest represents longer term sentiment of commercial investors. I agree with ogm that 'short term traders' have been shaken out with the recent parabolic move from early May. Bulls on the other hand tend be more complacent in hanging on to their postions in a down turn. This downturn was swift and the severity caught many off guard.
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