EB Watch List Update Report

Dear Members: Market Update: The bulls have done a terrific job of late, going back to the most recent bottom in early May and holding at important levels the few times selling kicked in. Now we're at a point where the NASDAQ is technically overbought, up 10% since the May 3 low, quite a rise in such a short period of time. During the same period of time the S&P has risen 6%, not too shabby either, but continuing to show that tech stocks have led the move higher. I'm pointing out the strong performance in the NASDAQ which hit another record high today since it's taken the lead in moving stocks higher. And since it's now technically stretched we have to wonder if both the Dow and S&P would move down in unison should traders take profits on the tech side. If the answer turns out to be yes then it will show continuing reluctance to commit funds to blue chips and non-tech related stocks. However if traders became more willing to spread their capital around to other sectors that wouldn't be such a bad thing. The VIX is showing renewed confidence in equities as it touches a level not seen since late January. So even if we do see selling it could be short lived if traders see it more as an opportunity to buy on any dips. On the chart it looks like there could be some resistance around 2763 on the S&P. To the downside the 20 day moving average, currently at 2719 is the first key level of support. Bottom line is the bulls currently have control of the action but the rally on the NASDAQ could be getting a bit long in the tooth. Companies reporting earnings Today (June 6) Before Market Opens: SIG and VRA After Market Closes: None Companies reporting earnings tomorrow (June 7) Before Market Opens: SJM and MTN After Market Closes: AVGO and COO ADDITIONS TO WATCH LIST I'm impressed with the overall market action but wouldn't mind seeing some profit taking before getting too aggressive on the long side. Will keep you posted on any new alerts. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None LONGS: Large Cap Watch List None Mid Cap Watch List None Small Cap Watch List CATM - Stock is higher by almost 2% and back above all key technical levels. A close above $27.50 would be bullish. PBH - Stock is higher by 1.3% and a close above $34.92 would be very bullish. Deletions from Watch List None At your service, John Hopkins EarningsBeats