Bullish / Bearish
Bullish = expecting up, bearish = expecting down.
Bullish and bearish describe the directional expectations of a market or an investor. Bullish (from the bull, which strikes upward with its horns) means expecting higher prices; bearish (from the bear, which strikes downward with its paw) means expecting lower prices. The terms are used both for a single stock ('I am bullish on Apple') and for the market as a whole ('the market is in a bull run').
Formally, a bull market is defined as a rise of at least 20% from a trough; a bear market as a decline of at least 20% from a peak. These thresholds are conventional, not physical: there is no law requiring 20%. The distinction is useful for describing the dominant market regime and consensus expectations.
Worked example
The S&P 500 bull market that began in March 2020, after the COVID low bounce, lasted until January 2022 — roughly 23 months. The 2022 bear market (January–October) brought the S&P to -27% from its highs, technically qualifying as a bear market. From the October 2022 low, a new bull market began and as of May 17, 2026, remains intact.
The term 'bullish' on a single stock expresses a directional view and does not guarantee the price will rise. An analyst can be 'bullish' on Nvidia with a Buy rating and a $1,200 target, meaning they expect a positive return over the following 12 months relative to the current price.
When it's used
Bullish/bearish is the common language for expressing the expected direction of an asset or market. In an operational context it is useful because it synthesizes a directional assessment into a single word, useful for fast communication. Lucex uses 'bullish' and 'bearish' in news sentiment to indicate the prevailing tone of news on a stock — it is not a recommendation, but an analysis of the dominant narrative.
Limits
The terms bullish/bearish on their own carry no informational value without a time horizon and a reference price level. 'I am bullish on Apple' says nothing about when, by how much, or with what confidence. In news sentiment, a prevalence of bullish stories can indicate a moment of euphoria — historically, peaks of positive sentiment often coincide with elevated price levels, not good entry points.
Frequently asked
What is the difference between bull market and bull run?
Bull market is a macroeconomic term describing a prolonged uptrend in the overall market (traditionally +20% from a low). Bull run is more colloquial and is also used for individual stocks or crypto to describe a phase of intense, rapid appreciation, without necessarily implying the technical 20% threshold.
Why a bull and a bear?
The exact origin is debated. The most widely cited explanation is behavioral: the bull attacks by thrusting upward with its horns (rising prices), the bear attacks by striking downward with its paw (falling prices). The symbols have been used in financial markets since at least the 18th century.
Can the market be bullish on one stock and bearish on the index?
Yes. Sentiment on an individual stock is independent of broad market sentiment. A defensive company (utility, pharmaceutical) can have bullish news even during a broadly bearish market environment. Divergence between stock-level and market-level sentiment is often informative about ongoing sector rotations.
Related terms
Educational definition. Not financial advice.