$SOL The market is experiencing a pullback, with both the S&P 500 and Nasdaq indices showing a decline. Here are the current numbers:

- *S&P 500 (SPX500/USD)*:

- Current Price: 5,651.20

- Change: -38.60

- Percent Change: -0.68

- *Nasdaq (NAS100/USD)*:

- Current Price: 19,974.40

- Change: -137.90

- Percent Change: -0.69

A pullback refers to a temporary reversal of the prevailing trend, where the price of a financial instrument decreases in an uptrend or increases in a downtrend before resuming the original trend. This phenomenon can be caused by short-term profit-taking, sector rotation or market conditions becoming overbought or oversold ¹.

To identify a pullback, traders often use technical indicators such as:

- *Relative Strength Index (RSI)*: measures the speed and change of price movements

- *Moving Averages*: smooth out price data to identify trends

- *Trendlines*: visualize the direction of the market

- *Support and Resistance Levels*: identify potential reversal points

Some effective strategies for trading pullbacks include ² ¹:

- *Classic Pullback Strategy*: entering the market after a pullback within a clear trend

- *Breakout Pullback Strategy*: trading when the price breaks a