Stock market margin debt has declined through the first half of the year which means that the market is operating in risk-off fashion.
At the end of June, stock market margin debt was down to $683.45 billion which represents a 14.5% decline from the $800 billion figure that was posted in March (more on that here). As margin continues to decline, there will be limited upside to any market rally because market participants will rely more on cash (which is limited) to finance their purchases. Participants will await the July data to see if the downtrend in margin debt has reversed for a potential signal on new market direction.
How long can the fiery stock market rally last if the gas (margin) continues to be pulled away from the fire?