EB Watch List Update Report

Dear Members: MARKET UPDATE When the S&P moved below 2437 yesterday it showed the market was in trouble since it had twice held that level. Now we've got the Dow and S&P in the red with the NASDAQ recovering some after dipping below 6200 for the first time in over a month. The VIX is down slightly after soaring yesterday on increasing fears. Traders are back to a shoot now and ask questions later. Even blue chips are lower though so far the Dow has held its 50 day moving average. The narrative has changed with the bears now in control with the 50 day moving averages on both the NASDAQ and S&P now key resistance instead of support. Said another way, more of an uphill battle. The bears are undoubtedly pleased that none of the major indexes are technically oversold. That could change if we get a few more days of selling but there's still plenty of room to the downside if traders continue to move to the sidelines. The S&P got as low as 2420 this morning with the next key level of support near 2400. We need to remember that today is options expiration Friday which has added to the increased volatility. In fact, in looking at the QQQ's it would not be surprising to see some type of rally in the NASDAQ as the day progresses since there are currently so many option bets against the market. But sentiment is very negative so the bulls are going to have to work overtime to convince traders to move in on the long side. For sure we could see some big swings between now and the market close as traders make decisions on whether to be long, short or in cash into the weekend. Right now it's a good time to continue to be cautious. The market could hold here or selling could increase. But for sure some serious technical damage has been done which at this moment favors the bears. KEY EARNINGS REPORTS Companies reporting earnings today (August 18) Before Market Opens: DE and EL After Market Closes: None Companies reporting earnings Monday (August 21) Before Market Opens: None After Market Closes: BHP ADDITIONS TO WATCH LIST None at this time BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List None at this time Mid Cap Watch List SGMS - Stock so far has held its 20 day moving average as it continues to consolidate. Small Cap Watch List VSH - Stock moved below its Intra Day stop of $16.95 yesterday so will be removed from the Watch List. DELETIONS FROM THE WATCH LIST VSH is being removed from the Watch List I want to wish everyone a restful weekend and will be back Monday with my EB Watch List Update Report. At your service, John Hopkins EarningsBeats