Stocks retreated on Friday. The Dow was down 185 points to 17535. The S&P 500 lost 17 points to 2046 and the Nasdaq Composite fell 19 points to 4717. The Dow and S&P 500 both violated their 50-day moving average lines. The volume totals were reported lighter on the NYSE and on the Nasdaq exchange, suggesting that institutional selling was not intensifying, despite the technical deterioration. Decliners led advancers on the NYSE by 2-1 and on the Nasdaq exchange by 3-2. Leadership waned as there were 17 high-ranked companies from the Leaders List made new 52-week highs and were listed on the BreakOuts Page, down from the total of 26 on the prior session. New 52-week highs outnumbered new 52-week lows on the NYSE while new lows yet again outnumbered new highs on the Nasdaq exchange.

Charts used courtesy of www.stockcharts.com

PICTURED: The Dow Jones Industrial Average violated its 50-day moving average (DMA) line with Friday's loss on lighter volume. 

The market's confirmed uptrend (M criteria) has come under pressure in recent weeks. Sustained rallies require a healthy crop of leaders (stocks hitting new highs), however leadership has recently waned. Very few issues have appeared to meet the fact-based investment system's guidelines or make meaningful headway in recent weeks. The Featured Stocks Page includes current notes with headline links for access to more detailed letter-by-letter analysis including price/volume graphs annotated by our experts.

The major averages declined as a late sell-off overshadowed positive economic updates. On the data front, retail sales rose 1.3% last month, the largest increase since March 2015. In a separate release, a gauge of producer prices ticked up 0.2% in April, after a 0.1% decline the previous month. Finally, a University of Michigan report on consumer sentiment came in at 95.8, the highest reading since last June.

All 10 sectors in the S&P 500 finished lower on the session. Financials and Energy were the worst performing groups. Consumer Staples shares were down with Wal-Mart (WMT -2.86%) falling, and Nordstrom (JWN -13.42%) tumbling as the department store reported a drop in quarterly sales and cut its profit forecast for the year. Nvidia (NVDA +15.21%) rallied as the graphics chipmaker’s earnings topped forecasts.

Treasuries strengthened as the session wore on with the benchmark 10-year note up 14/32 to 1.70%. In commodities, NYMEX WTI crude was down 1% to $46.24/barrel. COMEX gold added 0.2% to $1274.10/ounce. In FOREX, the Dollar Index gained 0.4% with particular strength against the euro.

The Retail Index ($RLX -1.22%) and financial indexes weighed on the major averages on Friday as the Bank Index ($BKX -1.59%) and the Broker/Dealer Index ($XBD -1.41%) fell. The tech sector was led by the Biotechnology Index ($BTK +1.02%) and the Semiconductor Index ($SOX +0.39%) posted a small gain, but the Networking Index ($NWX -0.28%) edged lower. The Gold & Silver Index ($XAU +0.57%) edged higher but the Oil Services Index ($OSX -2.47%) and the Integrated Oil Index ($XOI -1.30%) both fell. 

Charts courtesy www.stockcharts.com

PICTURED: The  Semiconductor Index ($SOX +0.39%) has slumped below its 200-day moving average (DMA) line. 

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Color Codes Explained :
Y - Better candidates highlighted by our staff of experts.
G - Previously featured in past reports as yellow but may no longer be buyable under the guidelines.

***Last / Change / Volume data in this table is the closing quote data***

Symbol/Exchange Company Name Industry Group	PRICE	CHANGE (%Change)	Day High	Volume (% DAV) (% 50 day avg vol)	52 Wk Hi % From Hi	Featured Date	Price Featured	Pivot Featured
								Max Buy
TDG - NYSE Transdigm Group Inc AEROSPACE/DEFENSE - Aerospace/Defense Products and; Services	$248.87	+1.87 0.76%	$249.62	765,486 140.20% of 50 DAV 50 DAV is 546,000	$250.77 -0.76%	5/11/2016	$248.33	PP = $245.00
								MB = $257.25
Most Recent Note - 5/13/2016 5:25:13 PM Y - Holding its ground while churning above average volume since highlighted in yellow with pivot point based on its 8/18/15 high plus 10 cents in the 5/11/16 mid-day report (read here). Gapped up on the prior session and hit a new high with a considerable volume-driven gain triggering a technical buy signal. Reported earnings +36% on +29% sales for the Mar '16 quarter, marking its 3rd consecutive quarterly comparison with earnings above the +25% minimum earning guideline (C criteria). Annual earnings history has remained strong. See the latest FSU analysis for additional details and a new annotated graph. >>> FEATURED STOCK ARTICLE : Fundamentals Strong Behind Technical Breakout - 5/11/2016  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
MXL - NYSE Maxlinear Inc Cl A Telecom-Infrastructure	$18.41	+0.82 4.66%	$18.51	1,386,995 97.13% of 50 DAV 50 DAV is 1,428,000	$19.10 -3.61%	2/26/2016	$16.10	PP = $16.19
								MB = $17.00
Most Recent Note - 5/13/2016 5:23:16 PM G - Posted a solid gain on average volume. Gapped up above its 50 DMA line on 5/10/16 for a considerable volume-driven gain. Members were reminded - "Remember that any stock that was previously sold can be bought again when strength returns." See latest FSU analysis for more details and an annotated graph. >>> FEATURED STOCK ARTICLE : Rebounded Above 50-Day Average Following Strong Earnings News - 5/12/2016  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
NVEE - NASDAQ N V 5 Global Inc Comml Svcs-Consulting	$26.80	-2.33 -8.00%	$27.39	960,517 1,549.22% of 50 DAV 50 DAV is 62,000	$29.30 -8.53%	4/19/2016	$28.20	PP = $28.10
								MB = $29.51
Most Recent Note - 5/13/2016 12:46:44 PM Y - Gapped down today after proposing a new Public Offering while perched at a new 52-week high. Such offerings often hinder near-term price progress yet help companies to attract more institutional owners (I criteria). Found prompt support after violating its 50 DMA line on 5/05/16. Reported earnings +39% on +54% sales revenues for the Mar '16 quarter, continuing its strong earnings track record. See the latest FSU analysis for additional details and an annotated graph. >>> FEATURED STOCK ARTICLE : Less Volume Behind Gain For Another New High - 5/10/2016  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I