#MarketPullback A market pullback is a temporary decline in the price of an asset, a stock, or the overall market, after a period of upward momentum. It's considered a normal and healthy part of a market cycle. Pullbacks are generally short-lived, with a drop of 5% to 10% from a recent peak, and they don't necessarily signal a change in the overall market's long-term trend.
Key Characteristics:
* Temporary: A pullback is a brief decline, often lasting only a few days or weeks.
* Moderate Drop: The decline is typically between 5% and 10% from a recent high.
* Part of an Uptrend: It happens within a larger, ongoing bull market.
* Not a Reversal: A pullback is a pause, not a permanent change in direction. A more significant and lasting drop is known as a market reversal or a bear market.
What Causes a Market Pullback?
Several factors can trigger a market pullback, including