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Mid Cycle Slowdown

Definition

A mid cycle slowdown represents a temporary deceleration in market activity or price appreciation during an ongoing upward trend. This phenomenon occurs within a broader market cycle, where a period of strong growth is interrupted by reduced momentum, often characterized by sideways price action or minor corrections. It is distinct from a full market reversal, serving instead as a consolidation phase before a potential resumption of the primary trend. This period can allow for a recalibration of market sentiment and the absorption of supply. It is a common occurrence in cyclical asset markets.