Primary trend: Broad, long-term movement of prices

Primary bull market phases

  1. Reviving confidence from the prior primary bear market

  2. The response to increased corporate earnings

  3. Speculation becomes dominant, prices rise on hopes and expectations

Primary bear market phases

  1. Abandonment of hopes upon which stocks were purchased

  2. Selling due to decreased earning

  3. Distress selling, regardless of value, by those who believe the worst is yet to come or who are forced to liquidate