The iShares Expanded Tech-Software Sector ETF (IGV) has staged a powerful recovery from its February lows, rallying ~40% and recently breaking above its 200-day moving average. While short interest has declined from peak levels, positioning remains elevated relative to historical norms, suggesting portions of the short base remain under pressure as momentum continues to improve.

Positioning / Short Interest

• Short interest remains elevated despite recent covering activity

IGV short interest expanded aggressively from approximately 8M shares in late 2025 to a peak near 50M shares at the end of April ‘26. Although some covering has emerged alongside the rally, current short interest remains around 40M shares, indicating a meaningful short position is still outstanding.

• Positioning dynamics are becoming less favorable for remaining shorts

A large portion of short exposure appears to have been established during the Feb-Apr decline. The price recovery has increased mark-to-market pressure on shorts, raising the probability of additional covering activity.

Technical View

• Long-term trend has turned positive

IGV has reclaimed both its 50-day and 200-day moving averages, a significant improvement from the downtrend that dominated early 2026. The 50-day moving average has turned higher and is beginning to converge with the 200-day moving average.

• Momentum remains strong

RSI has moved above 70, reflecting strong upside momentum and persistent buying pressure. MACD continues to trend higher with positive histogram expansion, confirming improving intermediate-term momentum.

Takeaway

• IGV's breakout has improved the technical backdrop while short positioning remains elevated. If the uptrend continues, additional short covering may become an incremental source of buying pressure.

Want to know more? Access this data in real time using S3’s BLACK APP & BLACK MAP

The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC (“S3 Partners”) to be reliable and accurate. Neither S3 Partners nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein or accepts liability arising from its use. Prior to making any decisions based on the information herein, you should determine, without reliance upon S3 Partners, the economic risks, and merits, as well as the legal, tax, accounting, and investment consequences, of such decisions.