EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: AON, COV, LEA, MCO, SLAB, TYC, VOD Monday: CMI, HLF, JEC, SOHU, TSN MARKET NOTE: Amazon.com (AMZN) was a big earnings disappointment after the bell on Thursday and home construction stocks ($DJUSHB) have lost short-term support. That combination has our major indices reeling after their recent push higher. The biggest technical issues are the combination of the S&P 500 failing to hold its breakout with a long-term negative divergence in play AND the NASDAQ's failure to clear 4486, potentially printing a double top. Volatility is also back on the rise, a bearish development. The week hasn't been a bad one, but it's not ending on a good note. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: LL - Been down over 30% since first being featured on this Short Watch List. LL is trying to consolidate and form a bottom so we're removing it from our Watch List. FLR - Haven't talked about this one in a long time after it broke its downtrend channel in early June and became more of a long candidate. Today, it's losing recent price support near 76.00. It really hasn't done much at all in either direction and is BEING REMOVED FROM OUR WATCH LIST. Large Cap Watch List: FDX - Flirting with its 20 day EMA. Loss of that support with a long-term negative divergence on its daily MACD could lead to further short-term losses as it consolidates recent gains. HSP - If you entered on the recent 50 day SMA and MACD centerline tests, keep in mind that 52.86 is closing price resistance. That would be a sell point until HSP is able to close above it on increasing volume. NVDA - Falling semiconductors impacting NVDA. If the SOX approaches price support near 600, that could coincide with our Second Entry here of 17.50. Mid Cap Watch List: GRPN - Did close yesterday beneath 6.20 so WE'VE REMOVED IT FROM OUR WATCH LIST. It does have gap support at 6.00 for those wanting to provide a bit more room. PAY - Again tested 35.00 price support and thus far is holding. WTW - Trading close to its 20 day EMA. A close above 20.91 would be short-term bullish, especially with increasing volume. Small Cap Watch List: There are no Small Cap Watch List stocks at this time. DELETIONS FROM OUR WATCH LISTS: LL and FLR are being removed from our Short Watch List. GRPN was removed at Thursday's close. There are no other deletions unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com