MARKET CYCLES

  1. Trends or patterns that can be seen in a market index by which some asset classes or securities outperform one another. Securities themselves may show price movements in trading, a complete uptrend and a complete downtrend. A market cycle is measured from the lowest point to the highest point and is considered finished when the prices of the index reach the starting point. Stock market cycle is said to be the leading indicator of business cycle and reflects varying investor sentiments.
  2. Directions seen in an industry or sector that surfaced from a particular innovation, product line, or regulatory environment. In an industry, revenue and net profits may flash trend or pattern growth among many firms.