A batch of disappointing economic data weighed on the market. Existing home sales unexpectedly dropped by -1% in December, restrained by the lowest supply of properties in more than a decade. Regional gauges on economic activity were also weak. Business conditions in the mid-Atlantic region fell in January to the worst level since July 2012 and the Chicago Fed's national activity index ticked lower in December. The spotlight now turns to Washington as House leaders prepared to vote on a three-month extension of the nation's borrowing limit.

Overall, sectors were mixed. Health care lagged behind, pressured by Johnson & Johnson's (JNJ -0.74%) loss after delivering a full-year forecast below estimates. Material stocks are helping limit losses as a ramp-up in copper sales helped Freeport-McMoRan Copper & Gold Inc (FCX +4.61%) best street expectations. Among other earnings results, E. I. du Pont de Nemours and Company (DD +1.77%) and The Travelers Companies Inc (TRV +2.15%) advanced after both companies handily exceeded profit expectations. Financials also helped the market advance.

On the downside, consumer staples were the worst performers as The Coca-Cola Co (KO -1.51%) fell. Profit tallies stay in focus after the closing bell with Google Inc (GOOG -0.23%)  International Business Machines Inc (IBM +0.83%) and Texas Instruments Corp (TXN -0.18%) all scheduled to report.

In fixed-income, Treasuries eked out minor gains as the 10-year note increased 2/32 to yield 1.83%.

Investors may consider new buying efforts in stocks meeting all key criteria, as the market's (M criteria) confirmed uptrend showed a great expansion in leadership (stocks hitting new 52-week highs). Widespread gains helped all of the major averages blast higher, and the benchmark S&P 500 Index is perched at its best level in more than five years.

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PICTURED: The Dow Jones Industrial Average rallied above its 2012 highs and finished near the session high.

Strength in influential financial shares underpinned the major averages' gains on Tuesday as the Bank Index ($BKX +0.79%) and Broker/Dealer Index ($XBD +1.00%) traded higher.  Defensive groups also has a positive bias as the Gold & Silver Index ($XAU +1.74%) and the Healthcare Index ($HMO +2.05%) tallied solid gains. Gains in energy-related shares also boosted the Integrated Oil Index ($XOI +0.77%) and the Oil Services Index ($OSX +0.77%). Meanwhile, the Semiconductor Index ($SOX -0.25%) edged lower and the Internet Index ($IIX +0.15%), Networking Index ($NWX +0.18%), and the Biotechnology Index ($BTK +0.43%) edged higher along with a modest gain for the Retail Index ($RLX +0.17%).

Charts courtesy www.stockcharts.com

PICTURED: The Broker/Dealer Index ($XBD +1.00%) has a well established upward trend in recent months. The financial group is an important leading indicator, so this strength gives evidence for a favorable outlook for the broader market. 

Rackspace Hosting Inc (RAX -$1.22 or -1.57% to $76.56) pulled back today with higher volume but not heavy volume, retreating from its all-time high. It is extended from its prior base, and it was previously noted "Prior highs in the $70 area define initial support to watch." It was last shown in this FSU section on 1/08/12 with an annotated graph under the headline, "Unhindered by Overhead Supply, But Extended From Prior Base", as we reminded members - "Disciplined investors avoid chasing extended stocks more than +5% above their pivot point.  Making sloppy buy decisions by chasing extended stocks invites a much greater chance that an ordinary consolidation might prompt investors to invoke the investment system's strict loss-limiting sell rule after a pullback of -7% or more from their purchase price."

It reported earnings +36% on +27% sales revenues for the quarter ended September 30, 2012 versus the year ago period and its fundamentals remain strong. The past 11 quarterly earnings comparisons have shown better than +25% increases (C criteria). Its annual earnings history (A criteria) since trading began in 2008 has been good. Increasing institutional ownership (I criteria) is a reassuring sign, as the number of top-rated funds owning its shares rose from 408 in Dec '10 to 653 in Dec '12.

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
CELG - NASDAQ Celgene Corp DRUGS - Drug Manufacturers - Major	$99.31	-0.72 -0.72%	$100.05	4,346,244 120.00% of 50 DAV 50 DAV is 3,621,900	$100.12 -0.81%	12/11/2012	$82.24	PP = $81.34
								MB = $85.41
Most Recent Note - 1/18/2013 4:28:11 PM G - Hit a new all-time high and finished near the session high today. Very extended from its prior base, but having rallied more than +20% in the first 2-3 weeks after its breakout, the investment system rules suggest holding such winners for a minimum of 8 weeks. See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 1/17/2013. 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
CFNL - NASDAQ Cardinal Financial Corp BANKING - Regional - Southeast Banks	$16.24	+0.28 1.75%	$16.26	219,637 97.18% of 50 DAV 50 DAV is 226,000	$16.90 -3.91%	12/3/2012	$15.20	PP = $16.31
								MB = $17.13
Most Recent Note - 1/18/2013 12:06:45 PM Y - Trading near its 50 DMA line (now $15.79) today following a gap down and loss with above average volume on the prior session. That important short-term average acted as support throughout its ongoing ascent. A damaging violation may trigger a technical sell signal. Reported earnings +54% on +28% sales revenues for the quarter ended December 31, 2012 versus the year ago period, continuing its strong earnings track record satisfying the C criteria. >>> The latest Featured Stock Update with an annotated graph appeared on 1/15/2013. 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
CMCSA - NASDAQ Comcast Corp Cl A MEDIA - CATV Systems	$39.81	-0.46 -1.13%	$40.25	13,542,079 120.44% of 50 DAV 50 DAV is 11,243,900	$40.28 -1.17%	12/3/2012	$37.08	PP = $38.06
								MB = $39.96
Most Recent Note - 1/18/2013 12:08:06 PM G - Color code was changed to green after rallying to its "max buy" level. Perched at its 52-week high with no resistance remaining due to overhead supply. Prior highs in the $38 area define initial support to watch on pullbacks. >>> The latest Featured Stock Update with an annotated graph appeared on 1/11/2013. 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
MIDD - NASDAQ Middleby Corp MANUFACTURING - Diversified Machinery	$134.46	+2.45 1.86%	$134.73	66,432 80.62% of 50 DAV 50 DAV is 82,400	$134.51 -0.04%	10/8/2012	$118.46	PP = $122.67
								MB = $128.80
Most Recent Note - 1/22/2013 3:23:24 PM G - Hitting new 52-week and all-time highs with today's 3rd consecutive gain. Earnings +23% on +18% sales for the Sep '12 quarter, below the +25% minimum earnings guideline (C criteria), raised concerns. >>> The latest Featured Stock Update with an annotated graph appeared on 1/14/2013. 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
N - NYSE Netsuite Inc DIVERSIFIED SERVICES - Business/Management Services	$66.15	-0.41 -0.62%	$67.31	139,712 39.36% of 50 DAV 50 DAV is 355,000	$70.80 -6.57%	12/12/2012	$64.75	PP = $67.12
								MB = $70.48
Most Recent Note - 1/18/2013 5:53:18 PM Y - Gapped down today yet finished near the session high and -6% off its 52-week high. Recent gains above its pivot point were marked by below average volume. See the latest FSU analysis for more details and a new annotated graph, >>> The latest Featured Stock Update with an annotated graph appeared on 1/18/2013. 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
NSR - NYSE Neustar Inc TELECOMMUNICATIONS - Diversified Communication Serv	$43.79	-0.17 -0.39%	$44.20	385,352 92.54% of 50 DAV 50 DAV is 416,400	$45.49 -3.74%	12/11/2012	$41.85	PP = $41.41
								MB = $43.48
Most Recent Note - 1/17/2013 4:24:25 PM G - After hitting a new 52-week high today there was a worrisome "negative reversal" for a loss with above average volume. Prior highs and its 50 DMA line coincide near $41 defining chart support to watch on pullbacks. See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 1/16/2013. 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
RAX - NYSE Rackspace Hosting Inc INTERNET - Internet Software and; Services	$76.56	-1.22 -1.57%	$77.78	1,052,168 83.85% of 50 DAV 50 DAV is 1,254,800	$78.62 -2.62%	12/18/2012	$71.88	PP = $70.10
								MB = $73.61
Most Recent Note - 1/22/2013 5:37:34 PM G - Pulling back today with higher volume but not heavy volume, retreating from its all-time high. See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 1/22/2013. 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
RNF - NYSE Rentech Nitrogen Ptnr Lp CHEMICALS - Agricultural Chemicals	$45.40	+0.55 1.23%	$45.50	257,003 80.92% of 50 DAV 50 DAV is 317,600	$48.19 -5.79%	11/1/2012	$39.11	PP = $40.15
								MB = $42.16
Most Recent Note - 1/22/2013 3:27:53 PM G - Up today for a 3rd consecutive gain with lighter volume. Consolidating well above prior highs in the $40 area defining near-term support to watch. >>> The latest Featured Stock Update with an annotated graph appeared on 1/9/2013. 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	$64.20	+0.43 0.67%	$64.41	1,368,403 88.18% of 50 DAV 50 DAV is 1,551,900	$64.69 -0.76%	12/20/2012	$60.24	PP = $61.21
								MB = $64.27
Most Recent Note - 1/22/2013 4:35:30 PM G - Managed a gain today for a new high close near its "max buy" level without great volume conviction and its color code is changed to green. Previously repeated guidelines for a proper technical buy signal were not satisfied. >>> The latest Featured Stock Update with an annotated graph appeared on 1/10/2013. 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