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We're in the midst of a brutal bear market. Stocks are under intense pressure and the S&P 500 is hitting new 52-week lows. Yet, we're still looking at potential short squeezes, specifically with Skillz (NYSE:SKLZ). That's as SKLZ stock is, somewhat miraculously, up about 13% on the day.

The stock is ripping higher on the day without any company-specific news. That's got traders looking at potential speculation as the main driver of the stock price.

Shares have not had a good run, down in five of the last six weeks. In that span, we've seen an incredible peak-to-trough decline of 56% in the stock price. On a longer-term look, SKLZ stock is down in 10 of the last 11 months.

Today's rally has been enough to send the share price back above the key $1 mark. That level is important as Skillz trades on the New York Stock Exchange, which has certain requirements — like a stock price cannot trade below $1 for 30 consecutive days without facing delisting.

Luckily for investors, SKLZ stock only closed below $1 once (yesterday).

Will SKLZ Stock Enjoy a Short Squeeze?

The fact that Skillz is positive on the day is already pretty impressive. That's simply from the perspective that the S&P 500 made new 52-week lows on the day and as stocks across the board are being pressured. Despite the outperformance by SKLZ stock, the fact that the stock hit new 52-week lows this week is not encouraging.

While Skillz does have a somewhat elevated short interest of 17% according to Fintel, I don't know if that alone is enough to trigger a squeeze. Traders generally like to see that number a little higher.

Further, SKLZ stock is not even on Fintel's Short Squeeze Leaderboard.

During a raging bull market, a speculative short squeeze is possible. I suppose one is also possible on stocks that have suffered a massive peak-to-trough decline, Like Skillz's 97% fall from its all-time high.

However, given the climate, that's simply not a speculation that many investors will want to make right now. If it does happen, I don't suspect it will have a very long runway. At least without cooperation from the rest of the market.

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On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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