#MarketPullback #MarketPullback
A **market pullback** is a temporary decline in stock prices, typically 5-10%, within an ongoing uptrend. It differs from a correction (10-20% drop) or a bear market (>20% decline). Pullbacks are caused by profit-taking, minor economic concerns, or short-term sentiment shifts. Investors often see them as buying opportunities, as fundamentals remain strong. For example, after a rally, the S&P 500 might dip briefly before resuming its upward trajectory. Traders watch key support levels and moving averages to confirm whether it’s a pullback or a deeper reversal. Proper risk management is essential to navigate these short-term dips.