Its either many posters here did not experience or have forgotten the 2002 decline, especially in the US.
There where days when the market was down 400pts at times(at a much lower level then today - % move more)where short sellers would step in during the last hour of trade, take profits, send the market up to finished on a small loss or gain for that day.
If short sellers where not involed here then during these periods of extreme confidence loss, the market would have closed on its lows and kept going then next day.
The markets still went down, but there was more order to it and less lost motion at the end of the move because short sellers where there.
The end of a move (up or down) is where the fast moves happen, it is very important that short sellers be allowed to build big positions now so when we come to the final stages that support will be there as that is when it is needed and the only people with profits & thus willing to buy are shorters.
If short positions are not established then the panic selling that will occour at that time could mean a spike of 1000+pts down on any day before genuiune support is found.
