Stocks finished firmly lower on Tuesday. The Dow was down 180 points to 17529. The S&P 500 lost 19 points to 2047 and the Nasdaq Composite fell 59 points to 4715. The Dow and S&P 500 both violated their 50-day moving average lines again, respectively. The volume totals were reported higher on the NYSE and on the Nasdaq exchange, suggesting that institutional selling pressure was rising. Decliners led advancers on the NYSE by nearly 2-1 and on the Nasdaq exchange by 3-1. Leadership was less evident as there were 15 high-ranked companies from the Leaders List made new 52-week highs and were listed on the BreakOuts Page, down from the total of 32 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 Nasdaq Composite Index is slumping on higher volume below both its 50-day and 200-day moving average (DMA) lines. 

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 retreated as positive economic data generated speculation that the Federal Reserve may raise interest rates sooner than anticipated. On the data front, consumer prices rose 0.4% last month, the biggest monthly increase in three years. Housing starts jumped 6.6% in April after tumbling by 8.8% in March. Building permits climbed 3.6% after a 7.7% decline in the prior month. Finally, industrial production posted the biggest monthly gain since 2014.

All 10 sectors in the S&P 500 finished lower on the session. Consumer Staples shares led the losses with Kraft Heinz (KHC -4.32%) down. Health care stocks lagged as AbbVie (ABBV -3.52%) fell after a U.S. Government agency questioned its Humira patent. In earnings, Home Depot (HD -2.47%) fell after quarterly sales growth slowed despite the home improvement retailer topping expectations. Agilent Technologies (A +3.42%) rose after earnings bested projections. Hertz (HTZ +12.60%) was a notable gainer, surging amid news the company’s CEO purchased 66,000 shares.

Treasury yield curve flattened to its narrowest level since 2007. The benchmark 10-year note slipped 1/32 to 1.75%. In commodities, NYMEX WTI crude gained 1.7% to $48.54/barrel. COMEX gold added 0.6% to $1281.30/ounce.

The Retail Index ($RLX -1.65%) and financial indexes dragged the major averages lower as the Broker/Dealer Index ($XBD -0.60%) outpaced the Bank Index ($BKX -0.14%) to the downside. The tech sector was led downward by the Networking Index ($NWX -1.32%) while the Biotechnology Index ($BTK -0.63%) and Semiconductor Index ($SOX -0.69%) also were lower. Commodity-linked groups were mostly positive as the Gold & Silver Index ($XAU +1.93%) and the Oil Services Index ($OSX +1.17%) rose, but the Integrated Oil Index ($XOI -0.13%) edged lower. 

Charts courtesy www.stockcharts.com

PICTURED: The Broker/Dealer Index ($XBD -0.60%) is sputtering below its 50-day 200-day moving average (DMA) lines. 

Asset Management Services Using the Winning Fact-Based Investment System - Inquire Now!

You can have professional help in limiting your losses and maximizing your gains in all market environments. For help with how your portfolio is managed in 2016 and beyond click here and indicate "Find a Broker". *Accounts over $250,000 please.  **Serious inquires only, please.

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	$248.90	-0.69 -0.28%	$251.48	528,199 95.00% of 50 DAV 50 DAV is 556,000	$250.99 -0.83%	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	$19.28	-0.13 -0.67%	$19.69	1,917,498 133.25% of 50 DAV 50 DAV is 1,439,000	$19.54 -1.33%	5/16/2016	$19.24	PP = $19.20
								MB = $20.16
Most Recent Note - 5/17/2016 12:16:23 PM Y - Hitting another new high with today's gain on above average volume. After highlighted in yellow with new pivot point cited based on its 4/04/16 high plus 10 cents it cleared the choppy 6-week base with a solid gain. The strong close above the new pivot point backed by +100% above average volume triggered a new (or add-on) technical buy signal. 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	$26.51	-0.26 -0.97%	$26.96	160,994 196.33% of 50 DAV 50 DAV is 82,000	$29.30 -9.52%	4/19/2016	$28.20	PP = $28.10
								MB = $29.51
Most Recent Note - 5/16/2016 12:43:46 PM Y - Completed a new Public Offering on 5/13/16 following a gap down from its 52-week high. Members were cautioned - "Such offerings often hinder near-term price progress yet help companies to attract more institutional owners (I criteria). 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