Here's exactly what needs to happen for stocks to enter a sustainable bull market

• The stock market is on the verge of ending its year-long bear market and entering a new bull market.
• One signal that would suggest the bear market is over is a continued decline in equity volatility.
• Here's exactly what needs to happen for the stock market to enter a new sustainable bull market, according to Fairlead Strategies.

The stock market is sitting on the edge of ending a year-long bear market and entering a new bull market after the S&P 500 staged an impressive 18% rally from its mid-October low.

But in order for a new bull market to be sustainable, a few signals have to flash, according to a Wednesday note from Fairlead Strategies' Katie Stockton.