How to Identify the Beginning of a Bull Market

By Michael Griffis, Lita Epstein

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.

  • Weekly chart of S&P 500 shows higher highs and higher lows; the MACD (Moving Average Convergence / Divergence) line is above the trigger line and rising.

  • Bullish percent index indicator shows bull alert or bull confirmation pattern.