Pullback/Retrace: The Market’s “Hold On, I Forgot My Keys!” Moment

Alright, imagine the market is a very determined person walking down the street. A trend is when they’re marching confidently in one direction.

Now, a Pullback (or Retrace, they’re basically twins) is when our determined market-person suddenly stops, takes a few steps backward, maybe checks their pockets, or glances at a shiny object in a shop window. “Hold on,” they seem to say, “I just need to… re-evaluate my life choices for a second.”

It’s not a full reversal where they turn around and march the other way entirely. Oh no, that’s a whole different, more dramatic market event. A pullback is just a temporary detour, a quick breather, a “let me just tie my shoelace” moment, before they resume their grand march in the original direction.

So, don’t panic when you see it! It’s usually just the market taking a brief, slightly indecisive pause before remembering where it was going all along.