What indicates the resumption of a bull market?

The resumption of a bull market is indicated by markets making new highs. This phenomenon suggests that the demand for stocks is increasing, as investors are willing to pay higher prices for them, reflecting broader confidence in the economy and the potential for future growth. New highs often signify that previous resistance levels have been overcome, which can attract more buying interest from both institutional and retail investors. This accumulation of buy-side pressure generally leads to further increases in prices, reinforcing the bullish sentiment.

In the context of the other choices, consistently declining stocks and low volume would typically point towards weakness in the market, suggesting a lack of investor confidence rather than a bullish environment. Similarly, rising interest rates often correlate with tighter monetary policy, which can dampen economic growth and put downward pressure on stock prices, contradicting the signs of a bull market. Therefore, the presence of new highs in the market is a much clearer and more reliable indicator that the bull market is resuming.