Margin debt on the New York Stock Exchange (NYSE) is often used as a Market Sentiment indicator.  The latest data shows that margin debt increased by a huge 6.5% in April and is now above $500 Billion for the first time. This will worry analysts as extreme margin debt levels often coincide with market tops.

What is Margin Debt? Margin Debt is the total money borrowed by investors from their brokers to buy stocks.  This is done using margin accounts.  Margin debt on the New York Stock Exchange (NYSE) is often used as a Market Sentiment indicator and interpreted in a contrarian fashion.  For example, extreme, collective margin debt levels […]