#MarketPullback

### **Market Pullback Explained (110 words)**

A **market pullback** refers to a temporary decline in asset prices, typically between **5% and 10%** from recent highs, before resuming an upward trend. Unlike a bear market (a drop of **20%+**), pullbacks are short-term corrections in a broader uptrend.

#### **Causes:**

- **Profit-taking** after strong rallies

- **Economic uncertainty** (e.g., Fed policy shifts)

- **Geopolitical tensions** or sector-specific risks

#### **Why It Matters:**

- **Healthy for markets** (prevents overheating)

- **Opportunity for investors** to buy at lower prices

Historically, pullbacks are common—bull markets often see **3-5 per year**. While unsettling, they rarely derail long-term trends unless fundamentals weaken. Traders watch key support levels to gauge whether a pullback may turn into a deeper correction.