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How to Identify the Beginning of a Bull Market

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2017-05-18 14:52:12
Investing in Stocks For Dummies
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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.

About This Article

This article is from the book: 

About the book author:

Lita Epstein, who earned her MBA from Emory University's Goizueta Business School, enjoys helping people develop good financial, investing, and tax planning skills. She designs and teaches online courses and has written more than 20 books, including Bookkeeping For Dummies and Reading Financial Reports For Dummies, both published by Wiley.

Grayson D. Roze has worked in the financial services industry for StockCharts.com since 2012. He now serves as a business manager at the company. He is the author of Tensile Trading: The 10 Essential Stages of Stock Market Mastery.