A bull market occurs when the broad markets face a prolonged increase in market prices. Market cycles are measured from peak to trough. If a broad market index, such as the S&P 500, increases at least 20% from its most recent low, the markets have entered a bull market.
In contrast, the bear market begins when the closing price decreases 20% from its previous highs. Bear and Bull markets are commonly occurring. As of June 2023, the S&P 500 data shows that the markets have experienced 28 bear and 28 bull markets since 1928. The duration of the bear and bull market varies significantly over the years.