EB Watch List Update Report

MARKET NOTE: Dear Members: Traders are doing some nibbling this morning after yesterday's sharp sell off. As usual the greatest interest is in the tech sector with the NASDAQ outperforming both the Dow and S&P. It's not necessarily unusual for a bounce after a big sell off. What would be more unusual would be for the market to just resume its upward ways as if there had been no technical damage yesterday, especially with the VIX soaring yesterday, even though it is lower today; it now rests well above all key technical levels as fear has ramped up big time. Though the NASDAQ remains above its 50 day moving average the same cannot be said for the Dow and S&P, both which are technically wounded. Of course the bulls have been very stubborn of late and have almost always found a way to regain the momentum. So we should not rule this out. But yesterday's selling on very heavy volume put traders on notice and for the first time in quite a while shifted momentum to the bears. There's nothing simple about the market but the bulls know what they need to do at a minimum to show they aren't dead yet and that is get the S&P back over the 50 day moving average, currently at 2469. Even then there would likely be strong resistance near 2082 at the 20 day. I do want to point out the continuing weakness in government bond yields with the 10 year treasury note touching 2.19% earlier in the session. We've also seen gold move up sharply. This shows that traders have moved into instruments they feel provide more safety as they move out of equities. At this point we should watch and see what happens as the day progresses and where the major indexes close by days end. In the meantime it makes sense to go very slow here so we can try to determine if what we are seeing is likely to be very short term in nature or if the selling could last for a while. KEY EARNINGS REPORTS Companies reporting earnings today (May 18) include: BABA, AMAT, ADSK, GPS, MCK, PERY, RL, ROST, CRM and WMT Companies reporting earnings tomorrow (May 19) include: CPB, DE and FL ADDITIONS TO WATCH LISTS: We added TKR to the Watch List yesterday with a tight stop of any INTRA DAY move below $46.95. It hit that level so will be removed from the Watch List. No additional alerts at this time. 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 None at this time DELETIONS FROM THE WATCH LIST TKR At your service, John Hopkins EarningsBeats