For the week, the Dow slipped 0.04%, the S&P 500 added 0.4%, and the Nasdaq gained 1.1%. Stocks finished higher on Friday. The Dow was up 65 points to 17500. The S&P 500 gained 12 points to 2052 and the Nasdaq Composite added 57 points to 4769. The volume totals were reported higher on the NYSE and on the Nasdaq exchange. Advancers led decliners on the NYSE by 4-1 and on the Nasdaq exchange by more than 3-1. Leadership improved as there were 20 high-ranked companies from the Leaders List made new 52-week highs and were listed on the BreakOuts Page, versus the total of 7 on the prior session. New 52-highs outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.

Charts used courtesy of www.stockcharts.com

PICTURED: The Nasdaq Composite Index rebounded toward its 50-day and 200-day moving average (DMA) lines. 

The market's confirmed uptrend (M criteria) has come under pressure in recent weeks.  The Dow and S&P 500 both violated their 50-day moving average lines. Sustained rallies require a healthy crop of leaders (stocks hitting new highs), however leadership has recently waned. 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 advanced as investors continued to weigh the possibility of an interest rate hike at next month' s Fed meeting. Today’s economic data consisted of a report that showed existing home sales rose 1.7% in April, above a projected 1.3% increase. In earnings news, retailer Gap (GPS +4.22%) rose after results were in-line with estimates. Deere (DE -5.48%) fell after reducing its full-year outlook. On the M&A front, Yahoo! (YHOO -1.40%) fell amid reports that bids for the company’s core internet assets are below prior expectations.

Nine of 10 sectors in the S&P 500 were up on the session. Technology and Health Care were the best performing groups. Applied Materials (AMAT +13.81%) rallied after the semiconductor equipment maker’s quarterly results beat expectations and raised its forward guidance. Vertex Pharmaceuticals (VRTX +4.55%) rose. Consumer Staples were the worst performing sector. Campbell Soup (CPB -6.38%) fell after posting a revenue shortfall.

Treasuries advanced with the benchmark 10-year note up 1/32 to 1.84%. In commodities, NYMEX WTI crude was down 0.9% to $47.75/barrel. COMEX gold slipped 0.2% to $1253.20/ounce.

The Broker/Dealer Index ($XBD +1.59%) and the Bank Index ($BKX +0.49%) both helped the major averages rebound on Friday while the Retail Index ($RLX +0.52%) also posted a small gain. The tech sector saw unanimous gains from the Biotechnology Index ($BTK +2.22%), Semiconductor Index ($SOX +3.16%) and the Networking Index ($NWX +1.18%). The Gold & Silver Index ($XAU +0.13%) inched higher, meanwhile the Oil Services Index ($OSX +2.19%) outpaced the Integrated Oil Index ($XOI +0.48%).

Charts courtesy www.stockcharts.com

PICTURED: The Oil Services Index ($OSX +2.19%) is rebounding near its 50-day and 200-day moving average (DMA) lines.

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