The major averages ended higher this week as investors digested the latest round of economic and earnings news. Volume on Friday was reported lower compared to Thursday's totals on both major exchanges. Advancers led decliners by over a 2-to-1 ratio on the NYSE and by a 3-to-2 ratio on the Nasdaq exchange. New 52-week highs again easily trumped new lows on both exchanges. There were 80 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 70 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally.

On Monday, stocks ended mixed after after Daimler AG (DAI +1.79%) and Citigroup (C -0.21%) reported better-than-expected results and news broke that the Securities and Exchange Commission did not unanimously approve pursuing a case against Goldman Sachs Group Inc. (GS -1.04%).

Stocks edged higher on Tuesday after after Goldman Sachs (GS) said Q1 earnings almost doubled and reaffirmed that it did not mislead investors. Apple (AAPL +1.64%) blew away estimates after Tuesday's close and reported another gang buster quarter.

Stocks ended mixed on Wednesday as speculation spread that the international aid package will not be enough to help Greece avoid defaulting on its debt. So far, approximately 1/4 of the companies in the benchmark S&P 500 have reported their Q1 results with approximately 90% of them beating estimates. This has been one of the strongest quarters in years which bodes well for the economic recovery. In addition, less than -3% of those companies missed estimates which is another healthy sign. Remember, that it is very important to not only focus on the companies results but how they react to the their numbers as we continue to make our way through the heart of earnings season.

On Thursday, stocks shook off earlier weakness and turned positive after President Obama outlined his plan to overhaul the financial system. Stocks closed higher on Friday helped by stronger than expected new home sales and the latest read on durable goods. New home sales surged a whopping +27% in March which was the highest reading since 1963! In addition, housing stocks soared this week which bodes well for the national real estate market.

Charts courtesy www.stockcharts.com

PICTURED: The Oil Services Index ($OSX +3.21%) rallied to a new recovery high Friday.

Amazon.Com Inc. (AMZN -$6.46 or -4.30% to $143.63) gapped down today, although results for the March 31, 2010 quarter topped estimates.  Technically, in recent weeks it rose from a 4-month cup shaped pattern to new multi-year highs, breaking out with twice average volume behind its 4/22/10 gain. A proper cup-with-handle pattern forms over at least an 8 week period and includes a handle at least one week in length while the stock drifts 10-12% lower on lighter volume. Not all stocks form a proper handle, and sometimes stocks form a high handle. AMZN's prompt reversal and close under its pivot point raised some concerns as it encountered distributional pressure, however increased volume and volatility are common near earnings news. Subsequent confirming gains with heavy volume would be reassuring to see, meanwhile any damaging losses undercutting its old high closes would raise more serious concerns.

AMZN was featured in yellow in the 4/23/10 mid-day report (read here) with its pivot point based on its old high (12/03/09) on the left side of its cup plus ten cents. Recent quarterly comparisons show sales revenues acceleration with 3 consecutive quarterly earnings per share increases in the +60% range, satisfying the C criteria. It also has a strong annual earnings (A criteria) history, improving greatly since FY '07 after a down turn.

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.