#MarketPullback A **market pullback** refers to a temporary decline in the price of a stock, index, or other financial asset within an ongoing uptrend. Unlike a full-blown **correction** (which typically involves a drop of 10% or more) or a **bear market** (a prolonged decline of 20%+), a pullback is usually a short-term dip of **5% to 10%** before the upward trend resumes.

### **Key Characteristics of a Pullback:**

1. **Short-Term & Temporary** – Typically lasts days to weeks.

2. **Healthy in Bull Markets** – Often seen as a natural consolidation after strong gains.

3. **Driven by Profit-Taking or Minor Negative News** – Not necessarily a sign of a major trend reversal.

4. **Potential Buying Opportunity** – Investors may use pullbacks to enter positions at lower prices.

### **Possible Causes:**

- Profit-taking after a strong rally

- Minor economic data misses

- Geopolitical tensions

- Sector rotation