Is the current surge in the Dow Jones Industrial Average a big short squeeze rally?

A short squeeze is a rapid increase in the price of a stock or index that occurs when there is a lack of supply and an excess of demand for a stock or index. Short squeezes result when short sellers cover their positions on a stock or index. This can happen if the price has been driven up to a point where they want to get out and cut their losses. Since covering a position involves buying shares, the short squeeze can spark an even bigger rise in price, which can then cause additional covering.

Due to the current bear market, there are many stocks with extremely high short interest, such as

Wynn Resorts

(WYNN) - Get Report

at 31%,

MGM Mirage

(MGM) - Get Report

at 33%,

Buffalo Wild Wings

(BWLD)

at 33% and

Palm

( PALM)at 35%.

Let's take a close look at four compelling stock charts of companies with high short interest that could be setting up to move much higher.

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