Bull market definition

A bull market is a sustained period of rising prices across a financial market. The term applies to stocks, forex, commodities, indices, crypto, futures, options, and CFDs.

A bull market usually runs on strong investor confidence, rising demand, improving economic data, positive earnings, or expectations of lower interest rates. In stock markets, it is often defined as a rise of around 20% or more from recent lows.

A bull market is the opposite of a bear market: a bull market is a sustained rise, a bear market a sustained fall. It favours long positions because prices are generally climbing, though pullbacks, reversals, and volatility still occur inside the broader uptrend.

Bull market Example

The S&P 500 rises from 4,000 to 4,800 over several months. The increase is:

4,800 - 4,000 = 800 points

That is a 20% rise, so traders may call the move a bull market if the advance is broad and sustained.