The major averages tanked for the third consecutive day as the euro slid to a fresh 14-month low and gold topped $1,200 per ounce. The major averages plunged below important moving averages as concern spread that other European countries might follow in Greece's ominous footsteps.  Volume totals were reported substantially higher on both the NYSE and on the Nasdaq exchange compared to Wednesday's totals, indicating massive distributional selling from large institutional investors. At their intra-day lows all the major averages traded below their respective 200-day moving average (DMA) lines. Decliners reportedly trumped advancers by an 18-to-1 ratio (if the data is reliable) on the NYSE, and decliners led advancers by a 7-to-1 ratio on the Nasdaq exchange. New 52-week lows outnumbered new 52-week highs on the NYSE and on the Nasdaq exchange, the first time in many months that new lows have trumped new highs on both exchanges. There were only 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, the same number that appeared on the prior session. Waning leadership has been evidenced by the recent lack of stocks making new highs as the rally came under pressure.

The European Central Bank (ECB) held interest rates steady at a record low of 1% on Thursday as the Greek parliament approved austerity measures demanded by the EU and IMF. This sparked massive riots in downtown Athens and sent stock markets plunging across the globe. Around 2:30PM EST, the bears showed up and pounded the stock market. The Dow Jones Industrial Average plunged nearly 1,000 points before buyers showed up and sent the Dow back up to finish down -347 points on the day. Shortly after the decline, news broke that the move occurred because of a massive trading error at a major firm. This was the Dow's largest single day point decline in history which reiterates the importance of raising capital when the market (M criteria) enters a correction. Even after the rebound from the intra-day lows, the Dow plunged on heavy volume as fear spread that the EU may collapse if other European countries fall behind on their debt payments.

A slew of commodities also got smacked as the dollar soared. Crude oil tanked to a fresh nine-week low in New York as investors reduced risk. Oil has lost nearly -10% this week as investors fear that the ongoing EU woes will adversely affect economic demand. However, gold soared as investors flocked to the perceived safety of the yellow metal while fear was abounding.

Charts courtesy www.stockcharts.com

PICTURED: The Gold & Silver Index ($XAU +1.00%) posted a small gain today, bucking a widely negative market and staying above its 50-day moving average (DMA) line. Its 50 DMA line has managed to stay above its 200 DMA following a recent convergence.

Vanceinfo Tech Inc Ads (VIT -$0.69 or -2.98% to $22.49) was down today and closed below its 50-day moving average (DMA) line. Its color code was changed to green based on recent distributional action. It was color coded yellow on 4/09/10 with new pivot point and "max buy" levels noted in the mid-day report (read here). However, deterioration and closes this week below prior high closes has completely negated the latest breakout. Broader market action (M criteria) is normally expected to impact 3 out of 4 stocks, and widespread losses effectively ended the latest rally.

Its small supply of only 11.6 million shares (the S criteria) in the publicly traded float could be a factor leading to greater volatility, especially in the event of mutual funds accumulating or distributing (selling) shares. This heightens the need for caution when buying and the discipline to limit losses, as always, if any stock ever falls more than -7% from your buy price.

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.