EB Watch List Update Report

MARKET NOTE: Dear Members: Earnings season has begun and the mantra now is, "show me the money!" With everything else swirling around the market what traders care about most is the bottom line; will earnings for Q1 come out as strong as many think they will? We got a small glimpse this morning with some major banks reporting their numbers with JP Morgan and Citigroup higher and Wells Fargo lower, so a mixed response. But starting next week and continuing for the month of April we're going to see thousands of companies report their numbers and this is what is going to determine the near term direction of the market. Right now traders continue to be skeptical; the VIX is down slightly but it still remains elevated relative to the past six months. In addition all of the major indexes remain technically challenged with only the NASDAQ holding slightly above its 50 day moving average; its just a bit less wounded. Maybe a small consolation for the bulls is the S&P so far has successfully held the 2337 level a few times now. But the bulls know they've got to quickly regain both the 20 and 50 day moving averages if they hope to have any shot at regaining the momentum. Something else worth noting. The 20 day and 50 day on the S&P are converging; the 20 day has not been below the 50 day since early November. Generally, when the 20 day crosses below the 50 day that's bearish. So another challenge for the bulls; can they hold the line here while the earnings season unfolds? Bottom line as we head into a 3 day weekend; the market has lost some luster and the bears hold the upper hand. That could change quickly but until it does we need to remain cautious. 2337 is important support on the S&P while 2356 is key resistance. KEY EARNINGS REPORTS Companies reporting earnings today (April 13) include: C, JPM, PNC and WFC Companies reporting earnings Monday (April 17) include: DISH, LLTC, MTB, NFLX, VMW and YHOO ADDITIONS TO WATCH LISTS: I will be more inclined to consider issuing trade alerts if the technical picture improves BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: SHORTS: None at this time LONGS: Large Cap Watch List None at this time Mid Cap Watch List None at this time Small Cap Watch List EXAS - Stock is up over 1.25% after moving even higher earlier in the session. A close above $23.62 would be bullish. DELETIONS FROM OUR WATCH LISTS: None at this time I want to wish everyone a restful holiday weekend and I will be back Monday morning with my EB Watch List Update report. At your service, John Hopkins EarningsBeat