Stocks closed lower amid speculation that the European Union will not bail out Greece. Volume was reported lower than the prior session on the NYSE and the Nasdaq exchange. Decliners and advancers were evenly mixed on both major exchanges. There were 6 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, down from the 9 issues that appeared on the prior session. New 52-week highs outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.

Stocks spent the session trading between positive and negative territory as Germany and France discussed plans on helping their troubled neighbors and the latest comments from Federal Reserve Chairman Ben S. Bernanke on how the Fed plans on raising rates. European Union leaders are slated to meet in Brussels on Thursday to discuss a workable solution to the ballooning debt crisis. Analysts believe that the EU will ask Greece to continue trimming their over-sized budget but will stop short of offering a full bailout package. Greek citizens flocked to the streets, protested and were on strike as the country falls deeper into debt. The massive protests shut down schools, hospitals and flights in response to government plans to freeze wages and cut benefits as the nation tries to reduce the largest deficit in the EU. Elsewhere, Bernanke said that he plans to raise interest rates "before long” which put rate hikes back on the table for 2010.

Charts courtesy www.stockcharts.com

PICTURED: The Semiconductor Index ($SOX -0.00%) was unchanged today.  It is off its high by -12.8% after having rallied +97.1% from its March 2009 low.  It has stayed above its 200-day moving average (DMA) line since May, when its 50 DMA rose above its 200 DMA line.  It has generally trended higher since that bullish crossover occurred, and the tech sector has been an important component underpinning the past year's rally.

Salesforce.com, Inc. (CRM +$0.07 or +0.11% to $64.73) held its ground today.  The high-ranked Computer Software - Enterprise firm encountered more pressure indicative of institutional (I criteria) distribution since its last appearance in this FSU section under the headline "Recent Damage Leaves High-Ranked Leader Testing Upward Trendline on 1/27/10.  Then it was observed - "An upward trendline connecting its September-January lows now defines an important support level, where any further deterioration to new lows would raise even greater concerns."  The upward trendline referred to at the time has subsequently been breached. Technically, the recent chart low ($60.30 on 2/05/10) is an important support level to watch, meanwhile a rebound back above its 50-day moving average (DMA) line is needed for its outlook improve.

Numerous notes in mid-January (see the "view all notes" links if you wish to review) called attention to CRM's deterioration.  The weakness has likely prompted disciplined investors to sell any shares bought at the later stage, if not positions accumulated earlier. Market conditions (M criteria) still argue for playing good defense for at least the near-term period until a follow-through day emerges.  More time is needed for a sound base to develop and, as stated above, a rebound back above its 50-day moving average (DMA) line is needed for its outlook improve.

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.