Stocks retreated on Wednesday. The Dow was down 217 points to 17711. The S&P 500 lost 19 points to 2064 and the Nasdaq was off 49 points to 4760. The volume totals were reported higher on the NYSE and on the Nasdaq exchange, a sign of distributional pressure. Decliners led advancers by 5-3 margin on the NYSE and more than 2-1 on the Nasdaq exchange. Leadership waned as there were 36 high-ranked companies from the Leaders List made new 52-week highs and were listed on the BreakOuts Page, down from the total of 54 on the prior session. New 52-week highs outnumbered new 52-week lows on the NYSE while new lows yet again outnumbered new highs on the Nasdaq exchange.

Charts used courtesy of www.stockcharts.com

PICTURED: The S&P 500 Index found support at its 50-day moving average (DMA) line. It is -3.2% off its record high hit on May 20, 2015. 

The market's confirmed uptrend (M criteria) has come under pressure recently while the DOW and S&P 500 Index are now consolidating just above their respective 50-day and 200-day moving average (DMA) lines. Sustained rallies require a healthy crop of leaders (stocks hitting new highs). Very few issues have appeared to meet the fact-based investment system's guidelines or make meaningful headway in recent weeks. The Featured Stocks Page includes current notes with headline links for access to more detailed letter-by-letter analysis including price/volume graphs annotated by our experts.

The major averages declined as retailers in the S&P 500 dropped over 4%, the worst day since 2011, amid disappointing earnings results. On the M&A front, Staples and Office Depot terminated their merger agreement after a federal judge sided with regulators’ concerns over the deal. Staples (SPLS -18.34%) and Office Depot (ODP -40.39%) both suffered big losses.

Nine of 10 sectors in the S&P 500 finished lower on the session. Consumer discretionary shares led the losses with retailer Macy’s (M -15.17%) fell after reporting weak spending in the first quarter. Disney (DIS -4.04%) was off as cord-cutting continues to weigh on its flagship ESPN brand. Fossil (FOSL -29.08%) tumbled after the company lowered its full-year earnings forecasts. Electronic Arts (EA +13.70%) rallied as revenue topped Wall Street expectations.

Treasuries finished higher along the curve with the benchmark 10-year note up 8/32 to 1.73%. In commodities, NYMEX WTI crude rebounded 3.2% to $46.08/barrel after a Department of Energy release showed U.S. crude inventories unexpectedly declined 3.4 million barrels last week. COMEX gold added 1.1% to $1279.20/ounce. In FOREX, the Dollar Index was off 0.5% with weakness against the yen and euro.

The Retail Index ($RLX -1.90%) had a negative influence on the major averages on Wednesday and the Bank Index ($BKX -0.60%) and the Broker/Dealer Index ($XBD -1.30%) both finished lower. The tech sector was led lower by the Biotechnology Index ($BTK -3.11%), and the Networking Index ($NWX -0.25%) and the Semiconductor Index ($SOX -0.31%) both suffered small losses. The Gold & Silver Index ($XAU +3.11%) was a standout gainer, and the Oil Services Index ($OSX +0.05%) and the Integrated Oil Index ($XOI +0.21%) each posted small gains. 

Charts courtesy www.stockcharts.com

PICTURED: The Biotechnology Index ($BTK -3.11%)is slumping below its 50-day moving average (DMA) line. 

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
TDG - NYSE Transdigm Group Inc AEROSPACE/DEFENSE - Aerospace/Defense Products and; Services	$247.11	-2.39 -0.96%	$250.50	898,288 166.66% of 50 DAV 50 DAV is 539,000	$250.77 -1.46%	5/11/2016	$248.33	PP = $245.00
								MB = $257.25
Most Recent Note - 5/11/2016 6:13:42 PM Y - Highlighted in yellow with pivot point based on its 8/18/15 high plus 10 cents in today's mid-day report (read here). Gapped up on the prior session and hit a new high with a considerable volume-driven gain triggering a technical buy signal. Reported earnings +36% on +29% sales for the Mar '16 quarter, marking its 3rd consecutive quarterly comparison with earnings above the +25% minimum earning guideline (C criteria). Annual earnings history has remained strong. See the latest FSU analysis for additional details and a new annotated graph. >>> FEATURED STOCK ARTICLE : Fundamentals Strong Behind Technical Breakout - 5/11/2016  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
MXL - NYSE Maxlinear Inc Cl A Telecom-Infrastructure	$18.08	-0.39 -2.11%	$18.52	1,363,087 94.53% of 50 DAV 50 DAV is 1,442,000	$19.10 -5.34%	2/26/2016	$16.10	PP = $16.19
								MB = $17.00
Most Recent Note - 5/11/2016 6:10:40 PM G - Pulled back today following powerful gap up for a considerable volume-driven gain. Reported strong earnings +422% on +190% sales revenues for the Mar '16 quarter versus the year ago period. Rebounded above its 50 DMA line. Recent consolidation was not a sound base pattern. Members were reminded - "Remember that any stock that was previously sold can be bought again when strength returns." >>> FEATURED STOCK ARTICLE : Found Support Above 50 DMA Line Consolidating Near 52-week High - 4/1/2016  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
NVEE - NASDAQ N V 5 Global Inc Comml Svcs-Consulting	$28.85	-0.25 -0.86%	$29.30	47,256 77.47% of 50 DAV 50 DAV is 61,000	$29.20 -1.20%	4/19/2016	$28.20	PP = $28.10
								MB = $29.51
Most Recent Note - 5/11/2016 6:11:54 PM Y - Pulled back on light volume today following 3 consecutive gains rallying for a new 52-week high. Found prompt support after violating its 50 DMA line last week. Reported earnings +39% on +54% sales revenues for the Mar '16 quarter, continuing its strong earnings track record. See the latest FSU analysis for additional details and an annotated graph. >>> FEATURED STOCK ARTICLE : Less Volume Behind Gain For Another New High - 5/10/2016  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I