#MarketPullback A market pullback is a short-term decline in asset prices that occurs within a larger upward trend. It is often described as a temporary drop or pullback from a recent high. Generally, a pullback is defined as a price decrease of 5 to 10%. It is considered a normal part of the market cycle and usually does not indicate a change in the overall positive market sentiment.
Here is a breakdown of the key aspects:
Characteristics of a Market Pullback:
* Magnitude: Typically a decrease of 5 to 10% from a recent peak.
* Duration: Short-term, usually lasts from a few days to a few weeks.
* Context: Occurs within an ongoing upward trend or bull market.
* Sentiment: Generally does not change the overall positive market outlook.
* Frequency: Pullbacks are relatively common and may occur several times a year.