A pause or moderate dip in the prices of a “tradable” security or commodity from the most recent peaks, while in general such prices remain on a trajectory of a continuing uptrend. Pullbacks are declines of 5% to 10% from a recent market peak, and are, by nature, short-term, unfolding for a month on average and taking up to a month further to retrace the decreases (and losses).
Pullbacks are usually ignited by news events that transpire into brief or short-lived, serious impacts. For short-term investors, market pullbacks may be a great cause of concern, particularly for those who need to exit the market (while it is still in the phase of a dip).
Comments