diff --git a/README.md b/README.md
index 785f21b..23d9224 100644
--- a/README.md
+++ b/README.md
@@ -406,11 +406,15 @@ shouldRenderSuggestions (size, loading) {
 
 ## [Events](#events)
 
+Below are the list of supported events. `@` is short-hand for 
+[v-on](https://vuejs.org/v2/guide/events.html#Listening-to-Events).
+
 | Prop                              | Returns               | Description                                                                                                                                                                 |
 | :-------------------------------- | :-------------------- | :-------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
 | `@selected`                       | suggestionItem, index | suggestion select handler. equivalent to sectionConfigs `on-selected` but for all items                                                                                     |
 | `@input`, `@focus`, `@blur`, etc. | \*                    | there is a transparent wrapper on the underlying `<input />` so vue-autosuggest will use any DOM event you pass it for listening. This is implemented using `v-on:<event>`. |
-| `@opened`, `@closed`              | \*                    | suggestions visibility handler, indicates when the suggestions are opened and closed.                                                                                       |
+| `@opened`, `@closed`              | \*                    | suggestions visibility handler, indicates when the suggestions are opened and closed. This is called alongside [shouldRenderSuggestions](#shouldRenderSuggestions).         |
+| `@item-changed`                   | suggestionItem, index | when keying through the results, this event signals which item is highlighted before being selected.                                                                        |
 
 ## Browser support
 
diff --git a/__tests__/autosuggest.test.js b/__tests__/autosuggest.test.js
index 091b0ea..66a87a9 100644
--- a/__tests__/autosuggest.test.js
+++ b/__tests__/autosuggest.test.js
@@ -784,25 +784,62 @@ describe("Autosuggest", () => {
       expect(str).toMatchSnapshot();
     });
   });
- it("emits opened and closed events", async () => {
-   const props = { ...defaultProps };
-   props.inputProps = { ...defaultProps.inputProps };
 
-   const wrapper = mount(Autosuggest, {
-     propsData: props,
-   });
+  it("emits opened and closed events", async () => {
+    const props = { ...defaultProps };
+    props.inputProps = { ...defaultProps.inputProps };
 
-   const input = wrapper.find("input");
-   input.setValue("G");
+    const wrapper = mount(Autosuggest, {
+      propsData: props,
+    });
+
+    const input = wrapper.find("input");
+    input.setValue("G");
+    input.trigger("keydown.down");
 
-   // Wait for watchers
-   await wrapper.vm.$nextTick(() => {
-     expect(wrapper.emitted().opened).toBeTruthy();
-   });
+    await wrapper.vm.$nextTick(() => {})
+    expect(wrapper.emitted().opened).toBeTruthy();
 
-   input.trigger("keydown.esc");
-   await wrapper.vm.$nextTick(() => {
+    input.trigger("keydown.esc");
+    await wrapper.vm.$nextTick(() => {})
     expect(wrapper.emitted().closed).toBeTruthy();
   });
- });
+  
+  it("emits item-changed event", async () => {
+    const props = { ...defaultProps };
+    props.inputProps = { ...defaultProps.inputProps };
+
+    const wrapper = mount(Autosuggest, {
+      propsData: props,
+    });
+    
+    const input = wrapper.find("input");
+    input.setValue("G");
+    input.trigger("keydown.down");
+    input.trigger("keydown.down");
+
+    await wrapper.vm.$nextTick(() => {})
+    expect(wrapper.emitted()['item-changed']).toHaveLength(2);
+    const itemChanged1 = wrapper.emitted()['item-changed'][0]
+    const itemChanged2 = wrapper.emitted()['item-changed'][1]
+    
+    // Emits with item and index
+    expect(itemChanged1[0].item).toBe('clifford kits');
+    expect(itemChanged1[1]).toBe(0);
+    expect(itemChanged2[0].item).toBe('friendly chemistry');
+    expect(itemChanged2[1]).toBe(1);
+    
+    input.trigger("keydown.up");
+    await wrapper.vm.$nextTick(() => {})
+    input.trigger("keydown.up");
+    await wrapper.vm.$nextTick(() => {})
+    await wrapper.vm.$nextTick(() => {})
+    
+    // Ensure empty item-changed is emitted when user keys back
+    // to the input #177
+    expect(wrapper.emitted()['item-changed']).toHaveLength(4)
+    const itemChangedEmpty = wrapper.emitted()['item-changed'][3]
+    expect(itemChangedEmpty[0]).toBeNull();
+    expect(itemChangedEmpty[1]).toBeNull();
+  });
 });
diff --git a/src/Autosuggest.vue b/src/Autosuggest.vue
index 380583b..ab549fa 100644
--- a/src/Autosuggest.vue
+++ b/src/Autosuggest.vue
@@ -310,7 +310,8 @@ export default {
         if (newValue !== oldValue) {
           this.$emit(newValue ? 'opened' : 'closed');      
         }
-      }
+      },
+      immediate: true
     }
   },
   created() {
@@ -399,7 +400,7 @@ export default {
               this.setChangeItem(this.getItemByIndex(this.currentIndex));
               this.didSelectFromOptions = true;
             } else if (this.currentIndex == -1) {
-              this.currentIndex = null;
+              this.setChangeItem(null)
               this.internalValue = this.searchInputOriginal;
               e.preventDefault();
             }
@@ -433,9 +434,10 @@ export default {
     setChangeItem(item, overrideOriginalInput = false) {
       if (this.currentIndex === null || !item) {
         this.currentItem = null;
+        this.$emit('item-changed', null, null)
       } else if (item) {
         this.currentItem = item;
-        this.$emit('itemChanged', item, this.currentIndex)
+        this.$emit('item-changed', item, this.currentIndex)
         const v = this.getSuggestionValue(item)
         this.internalValue = v;
         if (overrideOriginalInput) {