Anyone think it's a coincidence that the market started to roll over soon after the uptick rule was eliminated? Check the chart of the Russell 2000, it declined almost 10% from its recent peak. Small cap stocks have been pummeled and some folks think the ability to short sell shares without waiting for an uptick is one of the reasons for the market swoon of late. I'd suggest it certainly exacerbated the decline, but it is not the sole reason. Nonetheless, it is important to understand the dynamics of what this means to the market. Click here for a solid blog posting about the elimination of the rule and what it might mean for the market. Good Luck!
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