Over the latest reporting period, short interest activity has seen a health rebound. The first chart shows a sector by sector breakdown of the percent change in the shares sold short between July 31 – August 15, 2011. The biggest change was industrials, which happen to be one of the hardest hit sectors over the past few weeks
Interestingly, the Short Interest Ratio has dropped as trading volume has picked up. That is a bad sign as investors who are looking to press their positions have more ability to do so as there is greater liquidity.