EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Thursday: ADP, APA, BUD, BZH, CCJ, CI, CL, CME, COP, DTV, EXC, EXPE, GPRO, ITT, K, LM, LNKD, MA, MCHP, MCK, OXY, SBH, SGEN, SNY, SYNA, TMUS, TSLA, TWC, XOM Friday: AXL, CBOE, CLX, CVX, PG, RBS, WY MARKET NOTE: I have to say that I'm happy that today we have fewer stocks on our Watch Lists than at any point since this service was started in October 2013. Equity prices are tumbling today on the heels of warning signs that I've discussed for the past few months. Volume is accelerating as the S&P 500 drops beneath 50 day SMA support. If we close there, it'll be the first time since mid-April. 1900 would seem to be the next level of price support, although if technical conditions continue to deteriorate, don't be shocked to see 1815-1820 price support from mid-April tested. Housing stocks ($DJUSHB) closed beneath very important price support at 460 on Wednesday, which was a significant crack in the foundation of the bull market. That's being followed up by multiple breakdowns across key areas, which should be noted. Remain cautious. ADDITIONS TO WATCH LISTS: There are no additions to our Watch Lists today. Thankfully, we haven't added stocks recently. We will likely be adding soon but now that technical conditions have deteriorated, we want to exercise patience. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no stocks on our Short Watch List at this time. Large Cap Watch List: CNP - Lost price support near 24.65 at Wednesday's close and is seeing more selling today. You could exit to protect capital. The next level of support is at gap support close to 24.20. FDX - Has dropped back to test its 50 day SMA support again, but technically doesn't look bad. 145.50-147.50 still represents decent entry for those wanting to add a stock during this period of selling. JWN - Performing super on a relative basis. It once again tested price resistance at 70.21 on Wednesday before closing just beneath it. NVDA - Resting almost squarely on our recent Second Entry point of 17.50. If you're concerned about the sudden shift in the market, then consider exiting NVDA if it closes beneath 17.50 - for capital protection purposes. NVDA did make a significant push higher in February and loss of price support below 17.50 could lead to accelerated selling. Mid Cap Watch List: PAY - Volume is light, but gap support just beneath 34.00 is being lost. To protect capital, you could certainly sell if PAY doesn't close back above the 33.90-34.00 area. Small Cap Watch List: There are no Small Cap Watch List stocks at this time. DELETIONS FROM OUR WATCH LISTS: There are no deletions unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com