SPY shows reversal patterns where short interest decreases during sell-offs, whereas QQQ short positions remain constant without similar covering.

A decrease in SPY short interest by over 10% on the way down suggests the market is range trading rather than aggressively shorting into down momentum.

Short interest in SPY reached a bottom simultaneously with the price, indicating that investors are covering on the way down rather than piling on.

SPY short interest fell at the end of the month by more than 10%, which is significant.

This covering happened as the market sold off, which is reversal patterning, selling on the way up, covering on the way down.

The short interest reached a bottom as the underlying S&P 500 index reached a bottom.

This activity indicates that the market is range trading and isn’t piling on on the way down.

The QQQ position has been constant without covering on the way down. The short interest rose recently on the way up in a reversal pattern, the opposite of a squeeze.

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