Equity markets advanced thanks to an encouraging employment update. Non-farm payrolls increased by 195,000 for the second straight month, topping expectations for a gain of 165,000. In addition, the jobless rate remained at 7.6% as more Americans sought out employment.

Nine of the 10 S&P 500 sectors were higher with cyclicals outperforming defensive issues. Financials including JP Morgan Chase & Co (JPM +2.31%) and Industrials including 3M Company (MMM +1.91%) rose. Utilities lagged behind as Southern Co. (SO -0.60%) and Duke Energy Corp (DUK -0.18%) retreated. Now attention turns to the start of second-quarter earnings season with Alcoa Inc's (AA +1.30%) profit tally due out after the close next Monday. 

In fixed-income, Treasuries sold off. The 10-year note nearly fell two full points to yield 2.72%, its highest level since August 2011. The 30-year bond lost over three full points to yield 3.69%.

Monday's session marks Day 9 of the current rally attempt. Disciplined investors will note that the market (M criteria) did not produce a follow-through day within the most ideal period between days 4-7 of a new rally attempt. In spite of the recent rebound there is still a need for caution until a new rally is confirmed by a proper follow-through day (FTD) of meaningful gains (+1.4% or greater) from at least one of the major averages on higher volume coupled with an expansion in leadership (stocks hitting new 52-week highs). The rally attempt remains valid unless the Day 1 lows are violated which would clearly indicate deterioration and signal that the correction is worsening.

Upcoming CANSLIM.net reports will observe and explain any noteworthy shifts in the market direction (M criteria) while especially highlighting the characteristics and important details in the bold portion of this commentary. Regular readers are aware via prior reports since early June repeatedly reminding members - "Be protective of any gains, and limit losses!  Be especially watchful for any individual issues flashing technical sell signals.  It is vitally important to your success with the fact-based investment system to reduce exposure and preserve cash during market downdrafts."

Individual leaders best matching the winning models of the fact-based investment system are on the Featured Stocks Page - with our Certified experts' latest notes and links to additional resources including detailed analysis with annotated graphs.  The Premium Member Homepage - includes "dynamic archives" to all prior pay reports published. Watch for an announcement via email concerning the next WEBCAST.

PICTURED: The S&P 500 Index rebounded above its 50-day moving average (DMA) line and is challenging near-term resistance at a downward trendline. 

Financial shares underpinned the major averages' gains on Friday as the Broker/Dealer Index ($XBD +2.39%) and the Bank Index ($BKX +2.62%) both tallied solid gains.  The Biotechnology Index ($BTK +1.83%) led the tech sector while the Networking Index ($NWX +1.47%), Semiconductor Index ($SOX +1.35%), and Internet Index ($IIX +1.13%) posted unanimous gains.  The Retail Index ($RLX +1.05%) and the Healthcare Index ($HMO +1.27%) rose, and gains in energy-related shares boosted the Oil Services Index ($OSX +1.81%) and the Integrated Oil Index ($XOI +0.69%). The Gold & Silver Index ($XAU -3.19%) was a clear laggard as it suffered a large loss.  

Charts courtesy www.stockcharts.com

PICTURED: The Oil Services Index ($OSX +1.81%) recently rebounded above its 50-day moving average (DMA) line, rallying toward its May highs.

Prior reports noted - "Investors are taught in the Certification to only buy stocks with a combination of both strong fundamentals and strong technical action, however stocks should be sold based on their technical action only. In this example, more bullish action rewarded patient investors still giving it the benefit of the doubt until any technical sell signals start adding up." 

The number of top-rated funds owning its shares rose from 818 in Mar '12 in to 977 in Jun '13, a reassuring trend concerning the I criteria. It completed a Public Offering on 6/18/13, shortly after the M&A news.  The upshot on Public Offerings is that when they are completed the end result is typically an increase in the total number of institutional owners. Institutional owners are often supportive of their existing positions and will even accumulate more shares when they consolidate near classic support levels like the 50 and 200 DMA lines, if they are still believers in the company. If too many become pessimistic and decide to unload, this is what ends up sending the stocks slicing through support. 

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
AMBA - NASDAQ Ambarella Inc ELECTRONICS - Semiconductor - Specialized	$17.23	+0.16 0.91%	$17.48	530,958 44.86% of 50 DAV 50 DAV is 1,183,500	$18.58 -7.29%	5/6/2013	$15.31	PP = $16.10
								MB = $16.91
Most Recent Note - 7/1/2013 1:08:51 PM G - Color code is changed to green after rising back above its "max buy" level. Found support while recently consolidating above its 50 DMA line - important chart support where a violation would trigger a worrisome technical sell signal. >>> The latest Featured Stock Update with an annotated graph appeared on 6/27/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
EQM - NYSE E Q T Midstream Partners ENERGY - Oil and Gas Pipelines	$47.18	+0.43 0.92%	$47.46	51,552 33.83% of 50 DAV 50 DAV is 152,400	$51.72 -8.78%	4/25/2013	$40.16	PP = $40.84
								MB = $42.88
Most Recent Note - 7/1/2013 12:30:11 PM G - Testing support at its 50 DMA line ($47.11) with today's 2nd consecutive loss backed by above average volume. Below that short-term average, the prior low ($44.83 on 6/05/13) defines the next important support level. >>> The latest Featured Stock Update with an annotated graph appeared on 7/1/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
FLT - NYSE Fleetcor Technologies DIVERSIFIED SERVICES - Business/Management Services	$84.34	+1.10 1.32%	$84.42	494,124 54.77% of 50 DAV 50 DAV is 902,200	$89.75 -6.03%	5/29/2013	$86.02	PP = $85.66
								MB = $89.94
Most Recent Note - 7/5/2013 6:35:06 PM G- Rebounded to finish the week above its 50 DMA line with light volume behind its gains following distributional pressure. >>> The latest Featured Stock Update with an annotated graph appeared on 6/28/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
LOPE - NASDAQ Grand Canyon Education DIVERSIFIED SERVICES - Education and; Training Services	$33.85	-0.19 -0.56%	$35.17	336,829 79.93% of 50 DAV 50 DAV is 421,400	$34.48 -1.83%	6/19/2013	$31.47	PP = $34.17
								MB = $35.88
Most Recent Note - 7/5/2013 6:36:54 PM Y - Touched a new 52-week high but reversed into the red at the close. Subsequent volume driven gains above its pivot point may trigger a new technical buy signal. Its 50 DMA line and recent lows define support in the $30-31 area. >>> The latest Featured Stock Update with an annotated graph appeared on 7/2/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
PRAA - NASDAQ Portfolio Recovery Assoc DIVERSIFIED SERVICES - Business/Management Services	$158.93	+2.74 1.75%	$158.93	73,433 85.69% of 50 DAV 50 DAV is 85,700	$163.87 -3.01%	5/1/2013	$130.77	PP = $127.88
								MB = $134.27
Most Recent Note - 7/5/2013 6:39:37 PM G - Extended from any sound base. Consolidating above its 50 DMA line which defines important near-term chart support. >>> The latest Featured Stock Update with an annotated graph appeared on 6/25/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
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
PRLB - NYSE Proto Labs Inc MANUFACTURING - Small Tools and Accessories	$65.49	+0.51 0.78%	$66.45	245,580 49.18% of 50 DAV 50 DAV is 499,400	$67.40 -2.83%	6/17/2013	$59.37	PP = $59.94
								MB = $62.94
Most Recent Note - 7/2/2013 7:00:27 PM G- Encountered more distributional pressure today after a "negative reversal" on 6/28/13 at its 52-week high. Prior highs near $59 define important near-term support. >>> The latest Featured Stock Update with an annotated graph appeared on 6/26/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
RRTS - NYSE Roadrunner Trans Systems TRANSPORTATION - Air Delivery and Freight Service	$29.00	+0.68 2.40%	$29.00	75,745 36.75% of 50 DAV 50 DAV is 206,100	$29.52 -1.76%	4/3/2013	$22.77	PP = $23.75
								MB = $24.94
Most Recent Note - 7/5/2013 6:32:20 PM G - Finished at the session high and 2 cents off its best-ever close with a gain on below average volume. Wedged higher without great volume conviction after finding support above its 50 DMA line. Perched within close striking distance of its 52-week high. >>> The latest Featured Stock Update with an annotated graph appeared on 7/3/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
VRX - NYSE Valeant Pharmaceuticals DRUGS - Drug Manufacturers - Other	$88.77	-0.73 -0.82%	$90.82	798,289 38.04% of 50 DAV 50 DAV is 2,098,700	$96.25 -7.77%	4/30/2013	$60.24	PP = $76.66
								MB = $80.49
Most Recent Note - 7/5/2013 6:33:02 PM G- Holding its ground since completing a new Public Offering on 6/18/13 following recent M&A news. Concerns were raised by its sub par Mar '13 earnings report. See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 7/5/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M