Dow Jones Industrial Average rose above its June highs as it posted a 7th straight gain, its longest rally in two years, while the Nasdaq Composite made its 10th straight advance.  The reported volume total on the NYSE and on the Nasdaq exchange rose above the prior session total. Advancers and decliners were fairly evenly mixed, but showed a slightly positive bias on the NYSE and a slightly negative bias on the Nasdaq exchange.  There were 42 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 a couple of notches from the 40 issues that appeared on the prior session. New 52-week highs again greatly outnumbered new lows.

Federal Reserve Chairman Ben S. Bernanke said the economy is showing “tentative signs of stabilization,” and that “limited inflation pressures” will allow policy makers to keep interest rates near zero for an “extended period.”  White House National Economic Council Director Lawrence Summers chastised some banks that received government aid for not doing enough to reduce foreclosures.  Summers said President Obama had not consulted him on the potential reappointment of Federal Reserve Chairman Ben S. Bernanke.  Summers is regarded by Fed watchers as a potential candidate if Bernanke is not given a second 4-year term.

The US dollar climbed from a six-week low versus the euro on and the yen. Crude oil for August delivery rose +1.2% to $64.72 a barrel on the New York Mercantile Exchange, the highest settlement since July 2nd. Speculation swirled about CIT Group (CIT -21.60%), which just raised $3 billion in loans from a group of bondholders, eventually up filing bankruptcy. After General Motors recently received billions in bailout funds and raised capital, yet ultimately filed bankruptcy, there is a well-established precedent firmly in place.

PICTURED: The Benchmark S&P 500 Index traded above its June high intra-day. Technically, gains above prior highs with higher volume would be a very bullish indication which would help the near-erm market outlook improve further.

Charts courtesy www.stockcharts.com

PICTURED: The Bank Index ($BKX -3.10%) has slumped back under its 50-day moving average (DMA) line after encountering resistance at its 200 DMA line.  Its 50 DMA line remains under its 200 DMA line, but is coming closer to crossing over in a bullish fashion like the above mentioned BTK.

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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.