DEFINITION of 'Dull Market'

A market where there is little activity. A dull market consists of low trading volumes and tight daily trading ranges. There is very little change and action during a dull market. A common phrase when dealing with dull markets is, "never short a dull market." Some believe that the market is storing energy during dull markets and that the market is preparing for a rally.

BREAKING DOWN 'Dull Market'

A dull market can also be referred to as a flat market or in other words a market at rest. An example would be seeing the market end at or near the same price as when it opened for an extended period of time. During a dull market investors feel that once the market awakens the market is generally set to rise. Any moves after a dull market tend to be larger moves due to the lack of activity. The globalization of the financial industry has reduced the time a market remains dull.

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