EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: ACN, CAG, LEN, MKC, NKE, SCHN Friday: AZZ, KBH MARKET NOTE: Despite a couple periods of more significant short-term selling, the bulls keep bouncing back. The VIX has climbed and printed higher highs for five consecutive days, indicative of rising fear, but the VIX itself remains quite low based on historical standards. So if the bears want to keep the pressure on, we'll likely need to see breakdowns. I'm watching short-term support on the S&P 500 at 1950 and on the Dow Jones US Bank Index ($DJUSBK) at 305. If both those levels are lost, we could begin to see further deterioration in our major indices. Until then, it's likely the resiliency of the bulls will continue to shine through. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: ARG - Continues to trade below our 109.75 Closing Stop, but volume trends do appear to be improving so I'd honor that stop. LL - Will this one ever catch a bid? I posted this question yesterday and the stock promptly saw a bid in the afternoon. That bullish engulfing candle should finally give LL an opportunity to unwind its MACD back to centerline resistance while price action moves towards a 50 day SMA test. We'll see. PRGO - Volume wasn't particularly heavy on Wednesday, but PRGO did close above our 145.00 Closing Stop. So we would honor it. WE ARE KEEPING PRGO ON OUR WATCH LIST, HOWEVER, AND LOOKING TO POTENTIALLY RE-ENTER THIS SHORT POSITION NEAR 152.00. SBH - Moving up recently on increasing volume. This one, like LL, could see more short-term strength to unwind the slowing selling momentum that's been apparent on the daily MACD for weeks. Large Cap Watch List: CNP - Closed above 25.00 on Wednesday, a bullish development. The daily MACD is strong, so look for support on any 20 day EMA test. I expect higher prices here. FLEX - Bouncing once again off rising 20 day EMA support, which I would expect given the strong MACD at the most recent price high. JWN - Weak earlier today, but it has recovered much of its earlier loss. NVDA - Remains near-term weak, which probably has something to do with the recent weakness in the SOX. Mid Cap Watch List: GRPN - Very nice recovery on Wednesday from the early morning gap lower. WTW - After failing to hold what appeared to be trendline support, WTW now has two key levels of price support - the recent low at 20.71 and multiple lows earlier this year near 19.50. This one does still appear to be in a bottoming phase, although the loss of trendline support makes the near-term much more unpredictable. Small Cap Watch List: MTRX - Remains above near-term price support. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com