#MarketPullback Certainly! A "market pullback" or "temporary market correction" refers to a temporary decline in stock prices or the market as a whole after a period of rising and positive momentum. It is often described as a short-term pullback within an overall upward trend. Think of it as a brief pause or a few steps back before the possibility of resuming forward progress.
Here is a breakdown of the key aspects:
* Temporary nature: The defining characteristic of a pullback is its short duration. It typically lasts from a few days to a few weeks. This distinguishes it from more significant and longer-term declines such as corrections or bear markets.
* Within an upward trend: Pullbacks occur when the market in general or a specific stock is in a firmly established upward trend. A temporary decline does not necessarily indicate the end of this trend.
* Magnitude: While there is no strict definition, a pullback is generally considered a decline ranging from 5% to 10% from a recent high. Declines that exceed this range may be classified as a correction.