Margin Debt Peaks May Indicate End Of Cyclical Bull Market - SPDR S&P 500 Trust ETF (NYSEARCA:SPY) | Seeking Alpha

Margin Debt Peaks May Indicate End Of Cyclical Bull Market - SPDR S&P 500 Trust ETF (NYSEARCA:SPY) | Seeking Alpha



This is a great article about being able to predict stock market tops when margin debt has topped out and is declining.  The smart money usually knows when to get out of stocks.  The author presented some very good charts which showed that a margin debt peak preceded the start of a bear market by a short period of time.  A number of sources have talked about a recent decline in margin debt, but we don't know yet if margin debt is up again since global problems have currently subsided.  Also, one other difference in 2014 is that the S&P 500 is still amazingly climbing.  Stocks are not rolling over as they did at previous tops.  So, we will need to continue to monitor margin debt, stock patterns, and other indicators to know when to head for the exits.