In the world of financial markets, the term **"Pullback"** refers to a temporary decline in the price of a financial asset (such as stocks or currencies) within an overall upward trend. This pullback is considered an opportunity for investors to enter the market at better prices, provided that the underlying upward trend is still intact. ([Investopedia][1])
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### 📉 What is a Pullback?
* **Definition:** It is a temporary decline in the price of the asset during an overall upward trend.
* **Duration:** It usually lasts for a few days or trading sessions.
* **Difference from Reversal:** A pullback is temporary, while a reversal indicates a permanent change in market direction.
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### 🔍 How to Distinguish Between a Pullback and a Trend Reversal
* **Technical Analysis:** Using indicators such as moving averages or support and resistance levels to determine whether the pullback is temporary or the beginning of a reversal.
* **Fundamental Analysis:** If the fundamental factors supporting the upward trend have not changed, it is likely that the pullback is just that and not a reversal.
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### 📰 Recent Developments in Global Markets
* **Warnings of a Market Bubble:** Bank of America warned that former President Donald Trump's policies, such as tax cuts and reduced tariffs, could lead to a new market bubble, particularly in the technology and cryptocurrency sectors. ([Business Insider][2])
