The major averages managed to shake off their early losses as a batch of better-than-expected employment reports helped investors overlook soft economic data out of China and growing political unrest in Egypt. Looking at the data, ADP's private payrolls expanded more than expected in June, while weekly jobless claims came lower than anticipated.

Six of the 10 sectors on the S&P were higher, led by gains in tech stocks as International Business Machines Inc (IBM +0.91%) edged higher and Apple Inc (AAPL +0.55%) added to its recent winning streak. Energy stocks were active in the session as crude oil prices rose +1.5% to $101.06 per barrel.

Turning to fixed income markets, Treasuries were modestly lower along the curve. The benchmark 10-year note was down 7/32 to yield 2.50% and the 30-year bond gave up 5/16 of a point to yield 3.50%. 

Friday's session marks Day 8 of the current rally attempt. Disciplined investors will note that the market (M criteria) did not produce a follow-through day within the most ideal period between days 4-7 of a new rally attempt. In spite of the recent rebound there is still a need for caution until a new rally is confirmed by a proper follow-through day (FTD) of meaningful gains (+1.4% or greater) from at least one of the major averages on higher volume coupled with an expansion in leadership (stocks hitting new 52-week highs). The rally attempt remains valid unless the Day 1 lows are violated which would clearly indicate deterioration and signal that the correction is worsening.

Upcoming CANSLIM.net reports will observe and explain any noteworthy shifts in the market direction (M criteria) while especially highlighting the characteristics and important details in the bold portion of this commentary. Regular readers are aware via prior reports since early June repeatedly reminding members - "Be protective of any gains, and limit losses!  Be especially watchful for any individual issues flashing technical sell signals.  It is vitally important to your success with the fact-based investment system to reduce exposure and preserve cash during market downdrafts."

Individual leaders best matching the winning models of the fact-based investment system are on the Featured Stocks Page - with our Certified experts' latest notes and links to additional resources including detailed analysis with annotated graphs.  The Premium Member Homepage - includes "dynamic archives" to all prior pay reports published. Watch for an announcement via email concerning the next WEBCAST.

PICTURED: The Nasdaq Composite Index rebounded above its 50-day moving average (DMA) line. It is perched within close striking distance of near-term resistance at a downward trendline.  Meanwhile, the S&P 500 Index and Dow Jones Industrial Average have encountered resistance at their respective 50 DMA lines. Subsequent gains above that important technical hurdle by the Dow and S&P would help the overall market outlook improve.

The tech sector had a positive bias as the Internet Index ($IIX +0.30%), Semiconductor Index ($SOX +0.35%), and the Networking Index ($NWX +0.54%) each posted a modest gain. The Gold & Silver Index ($XAU +1.86%) was a standout gainer.  The Retail Index ($RLX +0.12%) and the Broker/Dealer Index ($XBD +0.20%) edged higher while the Bank Index ($BKX +0.02%) finished flat. Energy-related shares were quiet as the Oil Services Index ($OSX -0.26%) edged lower and the Integrated Oil Index ($XOI +0.06%) finished flat. The Healthcare Index ($HMO -0.19%) and Biotechnology Index ($BTK -0.05%) also finished the session with minimal losses.  

Charts courtesy www.stockcharts.com

PICTURED: The Healthcare Index ($HMO -0.19%) is perched near its 2013 high. It found support near its 50-day moving average (DMA) line on prior pullbacks throughout its ongoing ascent.

Roadrunner Transportation Systems Inc (RRTS  $-0.09 or -0.32% to 28.32) has been wedging higher without great volume conviction after finding support above its 50-day moving average (DMA) line. It is perched within close striking distance of its 52-week high. Fundamental concerns were raised by its sub par earnings increase in the Mar '13 quarter.

Its last appearance in this FSU section was on 6/20/13 with an annotated graph under the headline, "Following Negative Reversal With Losses on Lighter Volume". The prior highs in the $23 area define support to watch below its 50-day moving average (DMA) line. It showed resilience near its 50-day moving average (DMA) line, then started the month of May with a spike higher with heavy volume behind big gains. Because the fact-based system suggests watching for technical sell signals before exiting profitable position it was previously noted - "Investors who may own it might choose to give the stock the benefit of the doubt unless it flashes any weak action, however a disciplined investor following the fact-based system would usually avoid making new buying efforts in any companies failing to solidly satisfy the fundamental guidelines." 

Fundamental concerns recently were raised after it reported earnings +16% on +27% sales revenues for the quarter ended March 31, 2013 versus the year ago period, below the +25% minimum earnings guideline (C criteria). It is more ideal when a company shows accelerating sales revenues and earnings increases. Often a bullish price/volume chart anticipates strong earnings results in the coming quarter, while bearish price/volume chart patterns frequently predict weaker earnings in the future. Time will say if it can resume growth above the +25% rate.  Consensus estimates are currently calling for +21% and +19% earnings growth in FY '13 and '14, respectively.  Earnings growth is crucial to the fact-based investment approach and obviously weighs into the newspaper's Earnings Per Share (EPS) rating system. Its current EPS rank of 93 is still well above the 80+ guideline for buy candidates.

The number of top-rated funds owning its shares rose from 168 in Jun '12 to 206 in Mar '13, a reassuring sign concerning the I criteria.  The company completed a new Public Offering on 12/06/12 and, technically, it broke out above previously stubborn resistance in $19 area with volume-driven gains in January.

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
AMBA - NASDAQ Ambarella Inc ELECTRONICS - Semiconductor - Specialized	$17.07	+0.18 1.07%	$17.10	249,504 21.04% of 50 DAV 50 DAV is 1,185,700	$18.58 -8.13%	5/6/2013	$15.31	PP = $16.10
								MB = $16.91
Most Recent Note - 7/1/2013 1:08:51 PM G - Color code is changed to green after rising back above its "max buy" level. Found support while recently consolidating above its 50 DMA line - important chart support where a violation would trigger a worrisome technical sell signal. >>> The latest Featured Stock Update with an annotated graph appeared on 6/27/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
EQM - NYSE E Q T Midstream Partners ENERGY - Oil and Gas Pipelines	$46.75	-0.11 -0.23%	$47.00	93,871 62.13% of 50 DAV 50 DAV is 151,100	$51.72 -9.61%	4/25/2013	$40.16	PP = $40.84
								MB = $42.88
Most Recent Note - 7/1/2013 12:30:11 PM G - Testing support at its 50 DMA line ($47.11) with today's 2nd consecutive loss backed by above average volume. Below that short-term average, the prior low ($44.83 on 6/05/13) defines the next important support level. >>> The latest Featured Stock Update with an annotated graph appeared on 7/1/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
FLT - NYSE Fleetcor Technologies DIVERSIFIED SERVICES - Business/Management Services	$83.24	+0.83 1.01%	$83.32	396,825 43.40% of 50 DAV 50 DAV is 914,300	$89.75 -7.25%	5/29/2013	$86.02	PP = $85.66
								MB = $89.94
Most Recent Note - 6/28/2013 6:25:18 PM G- Endured distributional pressure and slumped to close the week below its 50 DMA line raising concerns and its color code is changed to green. See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 6/28/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
LOPE - NASDAQ Grand Canyon Education DIVERSIFIED SERVICES - Education and; Training Services	$34.04	+0.54 1.61%	$34.48	305,839 72.59% of 50 DAV 50 DAV is 421,300	$34.07 -0.09%	6/19/2013	$31.47	PP = $34.17
								MB = $35.88
Most Recent Note - 7/2/2013 6:57:14 PM Y - Finished at a best-ever close today with a gain backed by average volume. Its 50 DMA line and recent lows define support in the $30-31 area. Subsequent volume driven gains above its pivot point may trigger a new technical buy signal. See the latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 7/2/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
PRAA - NASDAQ Portfolio Recovery Assoc DIVERSIFIED SERVICES - Business/Management Services	$156.19	-2.49 -1.57%	$159.03	44,503 51.81% of 50 DAV 50 DAV is 85,900	$163.87 -4.69%	5/1/2013	$130.77	PP = $127.88
								MB = $134.27
Most Recent Note - 6/28/2013 6:41:46 PM G - Endured a loss on heavy volume. Extended from any sound base, it rallied with no resistance due to overhead supply. Its 50 DMA line defines important near-term chart support. >>> The latest Featured Stock Update with an annotated graph appeared on 6/25/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
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
PRLB - NYSE Proto Labs Inc MANUFACTURING - Small Tools and Accessories	$64.98	+1.41 2.22%	$65.44	205,619 40.68% of 50 DAV 50 DAV is 505,500	$67.40 -3.59%	6/17/2013	$59.37	PP = $59.94
								MB = $62.94
Most Recent Note - 7/2/2013 7:00:27 PM G- Encountered more distributional pressure today after a "negative reversal" on 6/28/13 at its 52-week high. Prior highs near $59 define important near-term support. >>> The latest Featured Stock Update with an annotated graph appeared on 6/26/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
RRTS - NYSE Roadrunner Trans Systems TRANSPORTATION - Air Delivery and Freight Service	$28.32	-0.09 -0.32%	$28.47	17,653 8.54% of 50 DAV 50 DAV is 206,600	$29.52 -4.07%	4/3/2013	$22.77	PP = $23.75
								MB = $24.94
Most Recent Note - 7/3/2013 2:49:34 PM G - Wedged higher without great volume conviction after finding support above its 50 DMA line. Perched within close striking distance of its 52-week high. See latest FSU analysis for more details and a new annotated graph. >>> The latest Featured Stock Update with an annotated graph appeared on 7/3/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
VRX - NYSE Valeant Pharmaceuticals DRUGS - Drug Manufacturers - Other	$89.50	-0.49 -0.54%	$90.34	848,047 40.37% of 50 DAV 50 DAV is 2,100,600	$96.25 -7.01%	4/30/2013	$60.24	PP = $76.66
								MB = $80.49
Most Recent Note - 7/1/2013 1:04:18 PM G- Small gap up today. Held its ground since completing a new Public Offering on 6/18/13 following recent M&A news. Concerns were raised by its sub par Mar '13 earnings report. >>> The latest Featured Stock Update with an annotated graph appeared on 6/24/2013. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M