EB Watch List Update Report

Dear Members: MARKET NOTE: Caution has been our key word of late including into yesterday's UK vote. Obviously the market was caught off guard with all of the major indexes sharply lower. The VIX is up over 28% as fear has ramped up big time. Both the Dow and S&P are back below their respective 20 and 50 day moving averages with the NASDAQ below its 200 day as well as tech stocks continue to lag. This unexpected development has soured traders especially with it coming ahead of the weekend. And as bad as it looks right now it could look much worse as the day progresses, especially if the S&P takes out its low of the day, now at 2052 and the June 16 low of 2050. That could lead to a test of the 200 day moving average, now at 2020. So there's still plenty of room to the downside if traders decide to step aside by the time the market closes. Already we're hearing analysts and others saying the S&P has held the current level time and again but we've got a different ballgame today. So nothing to do at all here but stay the course, see how the day finishes and then revisit come Monday.