What are the key indicators of a bear market?

A bear market is typically defined by a prolonged period of declining prices, often exceeding 20% from recent highs. Key indicators include a significant drop in stock indices, widespread pessimism among investors, and negative sentiment surrounding economic conditions. Increased volatility and declining trading volumes may also signal a bear market. Additionally, other economic indicators, such as rising unemployment rates, slowing GDP growth, and tightening monetary policy by central banks, can contribute to bearish trends. Traders should observe fundamental data alongside technical analysis to ascertain market direction effectively.