How might a technical analyst use credit balances in brokerage accounts?
A) Sell stock when credit balances rise
B) Buy stock when credit balances rise
C) Sell stock when credit balances decline
D) Choices b and c
E) None of the above.

Question

Quizplus · Accepted Answer

Technical analysts might interpret rising credit balances as a sign that investors have more funds available to buy stocks, potentially pushing prices up, leading them to buy stock. Conversely, declining credit balances could indicate that investors are borrowing more to buy stocks or are selling stocks to cover debts, potentially leading to selling pressure on stocks.

How Might a Technical Analyst Use Credit Balances in Brokerage