A **market pullback** refers to a temporary decline in asset prices, typically between 5% and 10% from recent highs, interrupting an overall upward trend. Often driven by profit-taking, economic uncertainties, or shifting investor sentiment, pullbacks are considered normal within bull markets, allowing markets to consolidate gains and avoid overheating. While unsettling for short-term traders, long-term investors may view pullbacks as opportunities to buy quality assets at discounted prices. Unlike corrections (10-20% declines) or bear markets (prolonged 20%+ drops), pullbacks are usually short-lived. Technical analysts monitor support levels to gauge potential rebounds, emphasizing patience and strategic entry points during volatility.
