Glossary · Markets & Trading Mechanics
Bull market / Bear market
Periods of generally rising / falling prices.
A bull market describes a stretch when prices are generally rising and optimism dominates. A bear market describes a stretch of generally falling prices and pessimism. Exact definitions vary; many commentators call a 20% drop from recent highs a bear market for a broad index.
These labels describe the overall climate, not every single day’s move. Even in a bull market there are pullbacks, and even in a bear market there are sharp rallies. For learners, the useful idea is mood and trend context — without assuming the label alone predicts what happens next.
Example
A multi-year climb in a major stock index with higher highs is often called a bull market; a sustained decline of roughly 20%+ from the peak is often labeled a bear market.