What characterizes a "bullish" market?

A bullish market is characterized by rising prices or the expectation that prices will rise in the future. This scenario reflects investor confidence in the economy and often results in increased buying activity. In such a market, positive sentiment tends to encourage further investment, as participants anticipate that this upward trend will continue. The term 'bull market' is commonly associated with strong economic conditions, greater corporate profitability, and improving employment statistics, all of which contribute to the positive outlook on asset prices.

In contrast, a market where prices are falling or expected to fall describes a bearish market, while stable prices indicate a lack of significant movement, and volatility points to unpredictability rather than a clear trend. Thus, identifying a bullish market hinges on understanding that it signifies an environment where price increases are both present and anticipated.