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Amateur Investors Weekend Stock Market Analysis (3/9/13)

http://www.amateur-investor.net/Weekend_Market_Analysis_Mar_9_2013.htm

As the S&P 500 nears its all time high NYSE Margin Debt has exploded once again to the upside as investors are massively borrowing money to invest in the market. Apparently investors have learned nothing from the previous two events when the Inflation Adjusted Margin Debt exceeded 350 Billion Dollars as both were followed by tops shortly thereafter.



Meanwhile as I have mentioned before the overall pattern in the S&P 500 since early 2000 may end up being a large Broadening Top similar to the one that occurred from the mid 1960's through early 1970's. Hopefully we will not see a repeat of the large correction that developed after the last Broadening Top pattern completed in the early 1970's. However with the extremely large amount of margin debt, if these investors are forced to liquidate their positions due to margin calls, things certainly could become very volatile.