Bull-bear line is the index aver­age line that indi­cates bull mar­ket or bear mar­ket in stock mar­ket. The 250-day mov­ing aver­age (the mov­ing aver­age line of cer­tain index for pre­vi­ous 250 trad­ing days) is always treated to be the bull-bear line, which pro­vides ref­er­ence value for mid-term and long-term invest­ment. If the cur­rent index drops below the bull-bear line, some investors believe the mar­ket turn bear­ish from bull­ish. If the cur­rent index rises above the line, some investors believe the mar­ket turn bull­ish from bearish.

Finan­cial ana­lysts have dif­fer­ent opin­ions on the bull-bear line. Some believed the 250-day mov­ing aver­age is not the “bull-bear line”. Accord­ing to Dow The­ory by Charles Dow, an Amer­i­can jour­nal­ist, bull mar­ket and bear mar­ket are defined by investor’s mind­set. Bull mar­ket devel­ops under extremely opti­mistic sit­u­a­tions while bear mar­ket devel­ops under extremely pes­simistic sit­u­a­tions. There is no lim­i­ta­tions on time dura­tion for both mar­kets. Investors should remind no one can expect the junc­tion between bull and bear mar­kets. This can only be known after the change happens