A more than year-long rally in America's major stock indexes has effectively limited shorting, or short positions.
Short positions in the US stock market are becoming less popular. Perhaps this graphic change does not make a big impression (7 or 9 percent – a small difference), but considering the situation at the beginning of 2023 and the current state, we have a decrease of more than half.
It is clear that investors are currently quite confident about the positive outlook for the US stock market.
The same can be said for America's tech Nasdaq. Shorting the prestigious American technology index, that is, opening short positions in the hope of profiting from a fall in this index, has long resembled Russian roulette.
Reaching ever new record levels has ruined more than one "bear". Currently, short interest in this index has fallen to an all-time low. The problem with the current situation is that the market is now more vulnerable to an unexpected shock that could cause prices to fall sharply. This could eventually become a bearish signal.