Pullback

A pullback means a small or moderate decline after prices have been rising. In simple terms, a pullback is a temporary drop in a market or asset that was previously moving higher. Pullbacks are important because they can give investors a chance to reassess prices after a strong move. Some investors see pullbacks as normal pauses within a larger upward trend. For example, if a stock rises for several weeks and then falls 3% for a few days, that may be called a pullback. A pullback is not the same as a crash. A pullback is usually smaller and more controlled, while a crash is a sudden and severe decline.