Market Fades Even with Opening Short Squeeze

I found this interesting, my Most Shorted Russell 3000 Index showed an early squeeze,

 Here's the initial short Squeeze in the MSI this morning on the open, but the averages' response?

DIA...

IWM...

QQQ...

SPY...

TICK...

This was before the Markit's US Manufacturing PMI beat at 57.5 on consensus of 56.5, more to come on that as I look through the data...