Bull Market vs Bear Market
What bull and bear markets mean, how they are defined, and how they affect trading signals.
Simple definitions
- Bull market — a market that has risen 20% or more from its recent low. Prices are trending up, sentiment is positive, and buyers dominate.
- Bear market — a market that has fallen 20% or more from its recent high. Prices are trending down, sentiment is negative, and sellers dominate.
The 20% threshold is the conventional definition, but the terms are also used loosely to describe any sustained upward or downward trend.
Why it matters for signals
In a bull market, BULLISH signals have a higher baseline probability of success — the overall trend is helping you. In a bear market, even technically strong BULLISH setups face headwinds from the broader downtrend.
TradeMind AI incorporates broader market context (S&P 500 trend, VIX level) into its signal analysis. The market header on the dashboard shows the current session status and key indices.
Individual stocks vs the market
A stock can be in a "mini bull market" even during a broader bear — if its sector is resilient or the company has strong earnings. Sector analysis matters as much as index direction.
Correction vs bear market
A correction is a pullback of 10–20% from a recent high. It is normal in any bull market and does not signal a trend reversal on its own. A correction becomes a bear market if it extends beyond 20%.
See it in action
Every TradeMind AI signal shows confidence score, entry, stop, target, and R-multiple — all explained with tooltip hints when you hover the term.