Some of the primary market trends in this context can be defined as the bull market and the bear market. A bull market tends to be associated with increasing investor confidence in the performance of the shares and stocks and instigating them to buy more with the expectation of further capital gains. A bear market is accompanied by widespread pessimism about the performance of the financial market. Bear market trends are observable in cases of prices of a key stock market index falling over a period of time from a recent peak period. The “great depression” of the 1930's in the US economy occurred mainly due to continuing bear market trends in the US stock markets in preceding years. Technical analysts of the stock market will state that the bulls and bears of the stock markets are a cyclical feature and thus many speculators and investors exploit these to reap the maximum capital gains. Business cycles, according to many, are at the heart of analyzing market trends in an economy as expansion and contraction tend to occur at regular intervals. While an exaggerated bull market run fuelled by over confidence and speculation leads to a stock market bubble (increasing anticipation of this symptom is found in China), exaggerated phases of the “bear run” can lead to a stock market crash and a recession.
The stock market or the share market is one of the fundamental components of the financial markets and one can get a good idea of where the market is headed by relying on two pieces of information: namely price and volume of the number of shares traded on a particular exchange on a daily basis. If the market has a high-volume day and prices (of the indexes) are up, usually an upward market trend is observed which will entail a buying spree from mutual funds and institutional investors who are the volume buyers and sellers that move the financial market. On the other hand, a high-volume day with prices falling (more sellers then buyers) could indicate a downward market trend which will be associated with big players pulling out of the market.