What is the TA of a Bear Market?

Discussion in 'Trading' started by lowhangingfruit, Nov 26, 2007.

  1. I apologize for my ignorance. When is the market considered a bear market. I know we that we have been in a bull market for years.

    Does the S&P have to loose 10%,15%,25% in a specified amount of time for it considered to be a bear market.
  2. There is no absolute definition. I guess the most generally followed one is a 20% decline from the top. I would add here that previously leading sectors and stocks should be annihilated (i.e. underperform) in the decline.
  3. Frrom investopedia

    A market condition in which the prices of securities are falling or are expected to fall. Although figures can vary, a downturn of 15-20% or more in multiple indexes (Dow or S&P 500) is considered an entry into a bear market.
  4. Would I surmise it is from there last 52w high?

    If I use 18% as the measure than the DJI would have to be around 11600 and the NDX would need to be around 1800.

    We would need a melt down or a prolonged contraction of the markets to achieve those types of numbers.
  5. moo


    We have just entered bear market territory according to the Dow Theory.

    "The Dow Jones industrial average continues to probe its important August low of 12,845.78. A close below 12,845.78 would confirm a similar breakdown in the Dow Transports and shift the Dow Theory into the bearish camp for the first time in more than four years."

  6. The terms "bull" and "bear" market really refer to the future of the market more so than the present. You will also often hear that we've been in a "bull" or "bear" market after the fact. So, right now, you could say that we're in a bear market, but that would normally mean that you expect the market to continue down.

    A recession, however, will come with a bear market and many will call it a recession if the market falls about 20% from highs. We are about 10% from highs now. If you believe that this is a true recession, you are likely bearish about the market and feel that we are heading for another 10% decline. If you are bullish, you may call this a 10% "correction" and expect that we'll start back up from here.

    So, those terms really have to do with the trend and the expected direction of the market more than the market's present standing. That's why, even after a 10% drop people will ask the question of whether one is bullish or bearish about the market.
  7. loose = not tight..... lose = you not win. come on its not that hard to remember