Buyers Tiring?

I really enjoyed the US Open Tennis Men’s Final between Novak Djokovic and Rafa Nadal.  It capped an incredible year for Djokovic.  He won three grand slam titles and lost only two matches the entire year.  Plus, anyone who can beat both Roger Federer and Nadal in the same tournament is pretty darn good in my book.

That being said, I also have to say that the final between Djokovic & Nadal was not steller tennis.  Djokovic, for example, made 51 unforced errors in this match.  Contrast this with his first round match where he hit only 15 unforced errors.  Nadal had similar statistics.  Serving for both players was also lackluster.  Nadal’s average first serve speed was only 107 MPH – quite low for someone who can very effectively hit serves at 125 – 130 MPH.

So what made these titans of tennis perform under par?  I think they were just exhausted.  It has been a long tennis year with lots of tournaments, and it was a long and grinding US Open.  I think they were just plain tired out.

And that brings us to the market.

I’ve posted a daily and 27,000 Tick chart of the S&Ps.  We can see the market is rising – yay for the bulls!  But like the players in the men’s tennis final, when we look beneath the surface, we have to be a little concerned about the buying.

The Weis Wave on the 27,000 Tick Chart shows that the buying waves over the past two days have not shown good quality demand.  Like our great tennis players, the buyers appear tired.  We see it in the shortening of the thrust in the waves and in the wave volume.

You can also see we are approaching the supply line from the August 31 high.

Now, we haven’t seen supply come in yet.  This will first be highlighted on David Weis’s Wave Chart.  But, if we continue to move up on such lackluster volume, sellers will see that buyers have become exhausted and step in to sell the market down.

If you are new to the blog and are unfamiliar with the Weis Wave, I invite you to check it out at the link that follows.  It is a steller guide to the structure of the market, and as most readers know, market structure is vital to understand.  You can learn more about the Weis Wave by clicking here: Weis Wave.