Stocks retreated ahead of the holiday weekend. The Dow lost 272 points to 16102. The S&P 500 was off 29 points to 1921. The NASDAQ declined 49 points to 4683. For the week, the Dow fell 3.3% while the S&P tumbled 3.4% and the NASDAQ moved 3% lower. The volume totals were reported lighter than the prior session totals on the NYSE and on the Nasdaq exchange. Breadth was negative as decliners led advancers by more than a 3-1 margin on the NYSE and by a 9-5 margin on the Nasdaq exchange. Leadership was elusive while only 1 stock made it onto the BreakOuts Page, down from 6 high-ranked companies from the Leaders List that made a new 52-week high on the prior session. There was only 1 gainer out of the 5 high-ranked companies currently on the Featured Stocks Page, a list that was trimmed during recent weakness. The total number of new 52-week lows swelled and easily outnumbered new 52-week highs on both exchanges while new highs totals were in the single digits.

Charts courtesy www.stockcharts.com

PICTURED: The Nasdaq Composite Index remains below its 50-day and 200-day moving average (DMA) lines. Friday's session marked Day 8 of a new rally attempt. Provided that the Day 1 session lows are not violated, investors may be looking for a valid follow-through day to possibly signal a new "confirmed rally" at some point. Follow-through days require at least one of the major averages to post a solid gain of +1.4% or more on higher volume, and the gain must be coupled with an expansion in leadership (stocks hitting new 52-week highs).

Keep in mind, for a market environment to be considered technically "healthy" at least 2 of the 3 major indices should be trading above their respective 200-day moving average (DMA) lines. The market correction (M criteria) grew worrisome as all of the major indices dove below their respective 200-day moving average (DMA) lines. A lot of recovery work must be done to get the indices back into "healthy" shape, and that improvement could require some considerable time and patience.

 Disciplined investors always limit losses by selling any stock that falls more than -7% from their purchase price. This is precisely how the fact-based investment system prompts investors to reduce exposure in weak markets, preserving cash until another confirmed rally marked by solid leadership. 

The major averages sold-off after a mixed non-farm payroll report. The economy added 173,000 jobs in August, missing analyst projections of 217,000. However, the unemployment rate unexpectedly fell to 5.1% from 5.2%, which is the lowest level since 2008. In another positive deliberation, July and June’s reports were revised higher. In Federal Reserve news, Richmond President Jeffrey Lacker stated that “it is time to end the era of zero interest rates.”

All ten sectors in the S&P 500 moved lower on the session. Materials and financial stocks led the losses. Shares of DuPont (DD -3.88%) pushed materials lower while financials were dragged down JP Morgan Chase & Co (JPM -1.88%). In earnings, luxury fashion brand Vince Holdings (VNCE -43.47%) tumbled badly after missing profit expectations and lowering guidance.

Treasuries gained strength after the jobs report. The benchmark 10-year note was up 08/32 to yield 2.13%.

Commodities were mostly lower. WTI crude slid 1.5% to $46.02/barrel. COMEX gold was off 0.3% to $1120.60/ounce. In FOREX, the Dollar Index fell 0.1% with weakness against the yen.

The number of stocks currently listed to the Featured Stocks Page has waned based on deteriorating market conditions. The most current notes with headline links help members have access to more detailed letter-by-letter analysis including price/volume graphs annotated by our experts. See the Premium Member Homepage for archives to all prior pay reports.

On Friday the Retail Index ($RLX -1.11%) slumped and financial shares were a negative influence on the major averages as the Broker/Dealer Index ($XBD -1.15%) and the Bank Index ($BKX -1.75%) fell again. The tech sector was weak as the Semiconductor Index ($SOX -1.80%) and the Networking Index ($NWX -1.51%) suffered losses and the Biotechnology Index ($BTK -0.05%) finished flat. Energy-linked groups were down again as the Oil Services Index ($OSX -1.64%) and the Integrated Oil Index ($XOI -2.20%) both sank. The Gold & Silver Index ($XAU -0.65%) also ended modestly lower.

The number of top-rated funds owning its shares rose from 282 in Sep '14 to 327 in Jun '15, a reassuring sign concerning the I criteria.  Its current Up/Down Volume Ratio of 1.2 is an unbiased indication its shares have been under slight accumulation over the past 50  days. It currently has a Timeliness Rating of A and a Sponsorship Rating of B. Its small supply of only 47.7 million shares outstanding (S criteria) can contribute to greater volatility in the event of institutional buying or selling.

Charts courtesy www.stockcharts.com

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
BOFI - NASDAQ B O F I Holding Inc BANKING - Savings andamp; Loans	$113.44	+4.60 4.23%	$115.24	475,620 162.88% of 50 DAV 50 DAV is 292,000	$134.79 -15.84%	6/10/2015	$101.47	PP = $97.78
								MB = $102.67
Most Recent Note - 9/4/2015 5:28:01 PM G - Posted 2 gains since halting its slide, but remains below its 50 DMA line after triggering a technical sell signal with volume-driven losses. A prompt rebound above the 50 DMA line ($117.77) is needed for its outlook to improve. >>> FEATURED STOCK ARTICLE : Damaging Losses Triggered Technical Sell Signal - 9/2/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
AHS - NYSE A M N Healthcare Svcs DIVERSIFIED SERVICES - Staffing and Outsourcing Service	$34.21	-0.03 -0.09%	$34.36	384,593 49.43% of 50 DAV 50 DAV is 778,000	$37.25 -8.16%	8/5/2015	$34.50	PP = $32.53
								MB = $34.16
Most Recent Note - 9/4/2015 5:25:15 PM G - Still consolidating above its 50 DMA line and prior highs defining near term support. More damaging losses would raise greater concerns, especially if slumping to a close back in the prior base. See the latest FSU analysis for more details and a new annotated graph. >>> FEATURED STOCK ARTICLE : Finding Support Above 50-Day Average and Prior Highs - 9/4/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
ULTA - NASDAQ Ulta Salon Cosm & Frag SPECIALTY RETAIL - Specialty Retail, Other	$157.70	-1.23 -0.77%	$158.99	600,917 64.48% of 50 DAV 50 DAV is 932,000	$176.77 -10.79%	5/29/2015	$155.03	PP = $159.95
								MB = $167.95
Most Recent Note - 9/1/2015 1:41:42 PM G - Still sputtering below its 50 DMA line ($163.59) which recently acted as resistance. A rebound above the 50 DMA line is needed for its outlook to improve. Found prompt support after undercutting its 200 DMA line on 8/24/15 amid broad market (M criteria) weakness. >>> FEATURED STOCK ARTICLE : Needs Rebound Above 50-Day Average For Outlook to Improve - 9/1/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
LXFT - NYSE Luxoft Holding Inc Cl A Comp Sftwr-Spec Enterprs	$62.69	-0.20 -0.32%	$63.00	195,563 69.10% of 50 DAV 50 DAV is 283,000	$68.16 -8.03%	5/26/2015	$51.90	PP = $57.40
								MB = $60.27
Most Recent Note - 9/3/2015 3:57:03 PM G - Found prompt support near its 50 DMA line ($61.09). More damaging losses would raise greater concerns. >>> FEATURED STOCK ARTICLE : After Shakeout a Prompt Rebound Above 50-Day Moving Average - 8/27/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
INGN - NASDAQ Inogen Inc HEALTH SERVICES - Medical Instruments and Supplies	$51.14	-0.85 -1.63%	$51.74	159,753 57.05% of 50 DAV 50 DAV is 280,000	$53.15 -3.78%	8/12/2015	$49.01	PP = $45.85
								MB = $48.14
Most Recent Note - 9/3/2015 3:53:28 PM G - Hitting a new high today, getting more extended from its prior base. Disciplined investors avoid chasing stocks more than +5% above prior highs or the pivot point. Found prompt support near its 50 DMA line and prior highs. >>> FEATURED STOCK ARTICLE : Found Support at 50-day Average Following Breakout - 8/31/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
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