Short interest remains high in small-cap stocks: The median Russell 2000 stock has a short interest of 5.5% of its market cap, the highest among major indices. This is more than double the 2.5% for Nasdaq-100 stocks and 2.4% for S&P 500 stocks, with the S&P 500 figure the highest in 7 years. Short exposure in the median S&P 500 stock has risen +1.0 percentage point over the last 3 years. By comparison, their long-term average is 1.9% over the last 30 years. Meanwhile, short interest in the Information Technology and Commercial Services sectors stands at 2.4% and 2.0%, both below their historical norms. Investors are betting heavily against small-cap and defensive sectors.(The Kobeissi Letter)