Behold Wall Street's new bull market, maybe

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Part of the uncertainty is that there is no set definition of a bull or bear market.

Traders work on the floor of the New York Stock Exchange in New York City, U.S., June 5, 2023. REUTERS/Brendan McDermidadvanced on Thursday, putting the benchmark index up 20% from its Oct. 12 closing low and heralding the start of a new bull market, at least by the definition of some market participants.

The S&P 500 rose 0.6% in Thursday's session, lifted by technology stocks, while volatility dropped to record lows ahead of an eventful economic and policy calendar next week.The most commonly accepted definition is a 20% rise off a low for a bull market and a 20% decline from a high for a bear market, but even that is open to interpretation.

Sam Stovall, chief investment strategist at CFRA in New York, adds a time element to his bear market criteria, requiring a low to remain intact for a duration of at least seven months, which he believes removes the risk of a quick reversal lower after a rally of 20% or more, such as what happened during the Great Financial Crisis.

 

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