A slight loss on Friday for the S&P 500 Index ended its winning streak, yet the Dow Jones Industrial Average posted a fifth straight gain and the Nasdaq Composite made its eighth straight advance. The Dow gained 597 points on the week, matching its best weekly point gain of the year -which was for the week ended March 13th, as stocks rallied from their extreme lows. The reported volume total on the NYSE was slightly higher while the volume on the Nasdaq exchange quieted. Decliners led advancers narrowly on the NYSE, but the ratio was 3-to-2 to the negative side on the Nasdaq exchange. There were 30 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, up from the 28 issues that appeared on the prior session. In the past week there was a noticeable increase in the number of stocks hitting new highs coupled with solid weekly gains and meaningful technical improvement in the major averages.  That helped the rally overcome its recent wave of distribution, and provided overall encouraging signs concerning the market's near-term outlook. As long as sufficient leadership exists (stocks making new highs) the rally will surely be sustained.

PICTURED: The benchmark S&P 500 Index climbed +7% this week rallied above its 50-day moving average (DMA) line with lackluster volume, rising from support at its 200 DMA line (which is still downward sloping).  A rally above resistance at its recent chart high (956) would bode especially well, technically, and could help stocks gain even more upward momentum.

Charts courtesy www.stockcharts.com

PICTURED: The Semiconductor Index ($SOX +1.22%) has a 7 session winning streak going, which helped it hit a new 2009 high on Friday.

NVE Corp (NVEC -$1.45 or -3.03% to $46.44) is perched near its 52-week high after light volume gains this week helped it rally from support near its 50-day moving average (DMA) line - important support to watch, where a violation would raise concerns and trigger a technical sell signal. Its color code was changed to yellow based its resilience near its 50 DMA after its 6/19/09 breakout from an "ascending base" type pattern with volume more than 2 times average was negated.  However, it needs more time to consolidate and form a sound base, especially since it briefly sank below its latest pivot point by more than -7% after its breakout.

It has a very small supply of only 4.67 million shares outstanding. This is another good reason to be especially disciplined about proper entries and exits.  A small supply is generally considered a good sign with respect to the S criteria, yet could contribute to great volatility in the event of institutional accumulation or distribution. NVEC has traded up as much as +46.23% since it was first featured in yellow at $33.85 in the Friday, March 13, 2009 Mid-Day Breakouts Report (read here).

Earnings per share rose +38% in the period ended March 31, 2009 versus the year ago quarter, yet sales were up just +14% and, as previously noted, the company's sales revenues thus far have been rather minuscule.  At less than $7 million per quarter in each of the past 8 quarters, sales have growing at a mostly lackluster pace percentage-wise. Companies reporting more substantial sales revenues generally make more reliable buy candidates, while companies with little "meat on the bone" can be particularly vulnerable to bad stumbles, fundamentally and technically.  Nonetheless, this high-ranked Electronics - Components leader has a good quarterly and annual earnings growth history (C & A criteria).

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.