How to Identify the Beginning of a Bull Market

By Lita Epstein, Grayson D. Roze

Part of Trading For Dummies Cheat Sheet

If you’re into trading stocks, bonds, and other funds, being able to identify the signs of a bull market can help you plan your trading strategy for maximum benefit. Signs that the market is entering a phase of investor confidence are in the following list:

  • Bull markets begin before the economy starts to recover.

  • Interest rates are low.

  • Industrial production statistics are inching higher.

  • Technology and cyclical stocks are starting to rise.

  • The weekly chart of the S&P 500 shows higher highs and higher lows; the MACD (moving average convergence divergence) line is above the trigger line and rising.

  • The bullish percent index indicator shows a bull alert or a bull confirmation pattern.