What Is a Market Pullback?
A market pullback (also known as retracement or consolidation) is a temporary decline within a broader upward trend—usually lasting just a few trading sessions. It’s not a full reversal but a short pause, often viewed as an opportunity to enter the market at a more favorable price.
Pullbacks are commonly defined as drops of 5% to 10% from recent highs, and are considered normal parts of market cycles, not reasons for alarm.