EB Watch List Update Report

Dear Members: Market Update: It's quite interesting watching the market here with all of the major indexes lower but the bears unable to administer a knock out punch. We're seeing the VIX higher by over 13% as volatility has picked up again with traders ready to bail "just in case." But it's going to take a lot more of this kind of selling to move traders to the sidelines en mass. What might it take to spook the market in a meaningful way? It would start with the S&P closing back below its 200 and 50 day moving averages currently at 2755 and 2747, respectively. What makes this even more interesting is a pattern that is developing where the 50 day is converging on the 200 day from below, very similar to what happened in the beginning of 2016. In that case when the 50 day crossed above the 200 day it remained above that level for 2.5 years with the market thriving. It was only in early October of last year when the 50 day crossed back below and when the market made the dramatic move lower that reversed in late December. So in some ways we could be at a major crossroad; do we actually see the cross or could this be the beginning of a major selloff? We won't know the answer until either the S&P does move back below those two key technical levels or if it breaks back above the recent high of 2860. And its very possible the S&P will simply trade between those levels for a while, maybe leading up to earnings season that will kick off in 3 weeks or so. In the meantime, even with all of the red printing on the screen, the bulls aren't likely to just lay down here and we could end up seeing some buying on the dip. In the meantime its a very good time to be holding some cash and we at least have a good idea of key levels to watch Companies reporting earnings today (March 27) Before Market Opens: LEN, PAYX, UNG and VALE After Market Closes FIVE, FUL, LULU, PVH, SNX and VRNT Companies reporting earnings tomorrow (March 28) Before Market Opens: , ACN After Market Closes: RH ADDITIONS TO WATCH LIST We will keep you posted on any new additions to the Watch List. BRIEF COMMENTS ON WATCH LIST STOCKS SHORTS: None LONGS: Large Cap Watch List None Mid Cap Watch List LEG - Stock is higher in spite of the selling in the market. It got as high as $42.17 and a move back above that level would be bullish. Small Cap Watch List None Deletions from Watch List None At your service, John Hopkins EarningsBeats