NYSE short interest data for the end of May was released after the close yesterday, and from the looks of the report, the market's weakness in the second half of the month emboldened the short sellers. Total short interest on the Big Board rose by 2.7% to another record high. At current levels, short interest represents 4.3% of all shares outstanding and has now risen by more than 40% from its levels in October when the S&P 500 peaked.
On an individual stock basis, it's easy to see where the shorts are focusing their bets. Of the ten stocks with the highest short interest as a percentage of float, all of them come from either the Consumer Discretionary or Financial sectors.