#MarketPullback A market pullback is a temporary decline in the price of a financial asset or market index after a recent rise. It usually ranges from 5% to 10% and is considered a normal and healthy correction within an overall upward trend. Pullbacks occur due to profit-taking, changes in investor sentiment, or minor economic news. Unlike a market crash or bear market, a pullback is short-term and doesn’t indicate a major trend reversal. Traders often view pullbacks as opportunities to enter positions at better prices. Recognizing pullbacks helps investors manage risk and avoid panic during minor market downturns.
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