Yesterday, the NYSE and NASDAQ both released short interest statistics for the month ending in June, and for each exchange, short interest levels increased. On the NYSE, short interest rose to yet another record high, up 2.67% to 18.125 billion shares. Looking at figures for the S&P 500, short interest as a percentage of float for the average stock rose from 5.8% to 6.0% of float.
A look at the stocks in the S&P 500 with the highest short interest shows exactly where the trouble lies- Consumer Discretionary and Financials. Of the twenty stocks with the highest short interest as a percentage of float, seventeen of them come from those two sectors.