EB Watch List Update Report

Dear Members: Market Update I pointed out yesterday that the 20 day moving average on the NASDAQ was converging on the 50 day with the S&P forming a similar pattern. Today that has played out with the cross occurring on both of those major indexes. When you see something like that develop it is often a "moment of truth." The bulls know what's going on and also know this is when they need to step up to stem further selling. The bears know as well so they will be working overtime to take the market lower. This is a battle worth watching since the stakes could be high, especially if the bears grab a hold of the momentum after yesterday's move higher. We can actually trace when the market started softening. It started on May 3 as the market peaked and especially when Apple started its descent lower after its huge move off the bottom. And when AAPL starts leading the market to the downside it's very difficult to gain any traction. Today's challenging market environment comes just ahead of the Fed minutes from the last FOMC meeting this afternoon with traders paying close attention to any fresh news. One plus for the bulls is all of the major indexes are well off the most recent lows, so some room to work with, with key support on the S&P remaining at 2800. To the upside the S&P will need to close back above 2873 for the bulls to have a chance at taking the market higher. Bottom line: still no need to rush into anything here and best to watch to see how things develop as the day progresses. Companies reporting earnings today (May 22) Before Market Opens: AAP, ADI, LOW and TGT After Market Closes LB, NTAP, SNPS and TARO Companies reporting earnings tomorrow (May 23) Before Market Opens: BBY, BJ, HRL, MDT, RY, SINA AND TD After Market Closes: ADSK, DECK, HPE, HPQ, INTU, LGF.A, ROST AND SPLK ADDITIONS TO WATCH LIST You will notice there are still currently no active alerts. Going to continue to be very selective here. 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 None Small Cap Watch List None Deletions from Watch List None At your service, John Hopkins EarningsBeats