EB Watch List Update Report

Dear Members: Market Update What needed to happen yesterday when the market was getting clobbered? The bulls needed to hold the line at the 200 day moving average on both the NASDAQ and S&P. The 200 day on the S&P is currently at 2775. It dipped below that level before closing back above it. Ditto on the NASDAQ which closed above its 200 day. So the bulls did what they needed to. Now today we saw some optimism early on with stocks moving higher only to see sellers book profits and leading traders to ask if the selling is over - or not. Remember we started the day yesterday with both the NASDAQ and S&P technically oversold so some nibbling at a key technical level made a lot of sense. But we're going to need to see some follow through today if the bulls hope to show that the worst of the selling is over. A lot of traders are still waiting for something - anything - that could serve as a catalyst to put more capital to work. Maybe the testing of the 200 day moving averages on the NASDAQ and S&P right when they became oversold could serve as that catalyst with the month of May coming to an end. We saw the S&P get to 2766 yesterday so that is now support. IF that level broke the next key level of support is at 2722, the March 8 low. To the upside the bulls will need to clear the 50 day, currently at 2871, in order to regain the technical advantage. That seems like a very tall order at the moment. Instead it's a good time to remain very selective while holding onto some cash in case we see even better opportunities. Companies reporting earnings today (May 30) Before Market Opens: DG, DLTR and TECD After Market Closes COO, COST, DELL, GPS, MRVL, UBER, ULTA, VMW and WSM Companies reporting earnings tomorrow (May 31) Before Market Opens: None After Market Closes: None 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 OMC - Stock is up slightly but off of the high of the session. A close above $78.40 would be bullish. Small Cap Watch List MTOR - Stock is higher by 1.9% but off the high of the session as it failed to clear its 20 day moving average earlier in the day. If it continues to stall there it could signal a near term top. However a close back above that level, currently at $21.29, would be very bullish. Deletions from Watch List None At your service, John Hopkins EarningsBeats