A market pullback refers to a temporary decline or dip in the price of stocks, indices, or the overall financial markets after a recent uptrend. It is usually minor (typically less than 10%) and is considered a normal and healthy part of market cycles.
Key Points:
Short-term: Lasts from a few days to a few weeks.
Magnitude: Typically a drop of 5–10%.
Causes: Profit-taking, macroeconomic news, geopolitical events, or technical resistance.
Opportunity: Often seen by investors as a chance to "buy the dip."
Would you like an example of a recent market pullback or tips on how to invest during one?