NEW YORK (TheStreet) -- There are certain underlying factors that play huge roles in gauging and signaling the stock market's general direction.
One of those is the level of margin debt at the New York Stock Exchange. This is the total dollar value of all securities purchased on that exchange using margin debt.
Just recently, on StockTwits, @RyanDetrick shared an insightful chart that highlights a key development.
And we shared his astonishing chart (see below). It shows that total NYSE margin debt, after falling significantly at the start of the year, has bounced rather quickly.
According to the latest report, NYSE margin debt is only 0.3% away from making a brand new all-time high. Here is how that compares to the S&P 500 (^GSPC):
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