#MarketPullback A market pullback is a temporary decline in the price of a stock, bond, commodity, or index after a period of upward momentum. It's generally considered a short-term event and doesn't signify a change in the overall trend. Pullbacks are often seen as natural pauses or corrections within a larger uptrend.
Here's a breakdown of key aspects of market pullbacks:
Definition:
* A moderate and temporary dip in price, typically ranging from 5% to 10% from a recent high.
* Occurs within an ongoing uptrend, suggesting that the underlying positive momentum is still intact.
* Considered a normal adjustment in the market cycle.
Causes