EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: FAST, JPM, WFC Monday: C, INFY, JBHT, MBT MARKET NOTE: The S&P 500 lost a key short-term support level at 1840 on Thursday's close and the NASDAQ is approaching a more intermediate-term support level at 3997. The odds are growing that we're entering a corrective phase of the market cycle. I'd actually be surprised if the market didn't bounce next week because of options expiration, but beyond that the technicals are suggesting further weakness ahead. Remain cautious. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: SJM - As expected, more selling has taken place here after losing 95.69 support on a closing basis on Thursday. Large Cap Watch List: COO - Stopped out on Thursday's close beneath 127.50 and has been removed from our Watch List. MCO - Today's open triggered our Second and Final Entry point. We do have a Closing Stop at 75.00, however, so unless we see a reversal, this one could be removed from our Watch List. UA - Like the stock, but would be surprised if UA didn't trigger its Final Entry at 96.70 eventually. Mid Cap Watch List: ATK - Volume trends remain quite strong here, I'd like to see 135.00 support hold. KFY - Negative divergence setting up a 50 day SMA test. Small Cap Watch List: PLOW - Keeps trying to get through short-term price resistance at 17.60. A close above would be bullish, especially if volume ticks higher. DELETIONS FROM OUR WATCH LISTS: On Thursday, COO closed below our stop and has been removed from our Watch List. There are no additional deletions today unless Closing Stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com