EB Watch List Update Report

Dear Members: Market Update We're seeing today that the 200 day moving average is an important level with all of the major indexes now substantially lower as the month of May comes to an end. Traders looking at charts see what happened the last time the S&P worked its way below the 200 day in mid October of last year, culminating in a big swoosh to the downside and resulting in the late December lows. Of course this doesn't mean we'll see a repeat but traders tend to get defensive with their capital as worries intensify. Right now there's support on the S&P just below 2750. The low on the S&P today? 2750. Something else worth looking at here is the yield on the 10 year Treasury Note, now at 2.16%. This is as low as its been since September, 2017. And now a number of analysts are predicting the next move by the Fed will be to reduce rates; quite a shift from prior thinking. But, just like stocks and the market can get overbought/oversold, government bond yields are looking like they could rebound some soon which could prove positive for stocks. But any way you cut it here the bears have control with all of the major indexes technically broken and at a minimum the bulls need to figure out a way to get the S&P back over its 200 day, currently at 2775. Short of that the market remains vulnerable to more selling. Companies reporting earnings today (May 31) Before Market Opens: None After Market Closes None Companies reporting earnings Monday (June 3) Before Market Opens: None After Market Closes: None ADDITIONS TO WATCH LIST As a reminder we issued a revised alert on MSFT. If the stock pulls back to $123.20 it will be added to the Watch List with a stop of any CLOSE below $122.90. 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 down slightly as it moves back below its 50 day moving average. It would help if it closed back above that level, currently at $77.72. As a reminder our stop is any CLOSE below $76.40. Small Cap Watch List MTOR - Stock is lower by 3% after testing and failing at its 20 day moving average yesterday. As a reminder, our stop is any close below the 200 day moving average, currently at $19.85. Deletions from Watch List None At your service, John Hopkins EarningsBeats