Bull Market Definition

Both the Dow Industrials and the S&P 500 must confirm the 19% or greater rise. The bull market definition requires both the S&P 500 and the Dow Industrials to rise by more than 19% from their last recorded lows. The bull-market definition requires a confirmed rise of at least 19% from bear-market lows. For trading purposes, meeting the bull market definition is equivalent to a buy signal. The bull market definition is a Dow Theory signal method used when usual secondary-reaction structures do not form. The bull market definition is valuable when a bear-market rally lacks the normal secondary-reaction structures required for standard signal generation. Once both indexes confirm the required rise, the bull-market definition becomes the fourth alternative buy signal. The bull market definition applies after a bear market when prices rise without the typical sequence of secondary-reaction pullbacks and highs. The bull-market definition is used when no usable completed secondary reaction exists.