A week ago we showed NYSE short interest, which in the aftermath of the massive slide in the EURUSD (the only real driver of beta these days, and with correlation at 1.000, also alpha), had soared to March 2009 levels. Naturally that left the market extremely exposed to any forced short squeeze, such as that witnessed 9 days ago when based on since refuted, but metastasized rumors, we saw a major flush higher in the Euro, and hence ES, which became self-sustaining once the short covering squeeze in stocks took over. Yesterday we got the latest NYSE short interest update and as expected, the shorts have dropped markedly with the number down from 15.7 billion on September 15 to 14.9 billion at the end of September. And since the SPY has moved from 110 to over 120 in the interim period, it is safe to say that when the next short interest update is released in two weeks, the number will be well in the low 14 billion range if not below it. The question is when the market will start pricing in the end of the short squeeze. Our estimate: at about the time when the EURUSD stops surging on hope and lies.