EB Watch List Update Report

Dear Members: Market Update The bulls continue to maintain control of the action with both the NASDAQ and S&P setting new record highs while the Dow continues its march higher. The move higher has been impressive though it is now starting to get very near technically overbought levels with stochastics on the S&P now at 98 and a RSI near 70. In yesterday's update I indicated that the next key level of resistance on the NASDAQ might be around 8050. Today it got within 4 points of that level before selling off some. For sure the market could continue its march higher here but it does carry additional risk. For example, the NASDAQ was up nearly 4% at its high today from just ten days ago and at some point traders will step aside and wait for better opportunities which makes total sense. The S&P got as high as 2903 earlier today so that is now the new level of resistance. Beyond that? Again, hard to say; we've never been in this territory in the history of the market. My best guess would be resistance up near 2925. In the meantime should profit taking kick in it wouldn't be surprising for the S&P to test its 20 day to the downside, currently at 2852. Companies reporting earnings today (August 28) Before Market Opens: BMO, BNS and BBY After Market Closes: None Companies reporting earnings tomorrow (August 29) Before Market Opens: DKS After Market Closes: None ADDITIONS TO WATCH LIST PLEASE NOTE: The Candidate Tracker has now been updated. There are almost 300 stocks on the list with 184 new additions, some of which could become trade alerts. Those members who are StockCharts.com members and who have been getting the Chart List in the past should have received the updated Chart List. If for some reason you have not received please let me know. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None LONGS: Large Cap Watch List None Mid Cap Watch List None Small Cap Watch List CSTM - Stock is lower by 1.6% after moving slightly higher this morning and a close above $12.15 would be bullish. WGO - Stock is up slightly with the next key level of resistance at the 50 day moving average, currently at $40.27. Deletions from Watch List None At your service, John Hopkins EarningsBeats