#MarketPullback
A market pullback refers to a temporary decline in the price of a financial asset, index, or the broader market after a period of upward momentum. Pullbacks are considered normal and often occur as part of healthy market fluctuations. Here's a breakdown:
Key Characteristics:
1. Magnitude: Usually smaller than corrections (which are declines of 10% or more) and bear markets (declines of 20% or more). Pullbacks typically range from 5% to 9%.
2. Duration: Often short-lived, lasting days or weeks.
3. Cause: Driven by profit-taking, overbought conditions, or minor shifts in sentiment.