With Tuesday's big losses the Nasdaq Composite Index and the benchmark S&P 500 Index both abruptly retreated back below their respective 50-day moving average (DMA) lines, raising concerns. Technical deterioration in the charts of the major averages (M criteria) coupled with a contraction in leadership gives investors more reasons to be cautious. Weakness in financial issues has added to previously noted pressure, contributing to the threat of a more substantial market "correction".

Disciplined investors always limit losses by selling any stock that falls more than -7% from their purchase price. This is precisely how the fact-based investment system prompts investors to reduce exposure in weak markets, preserving cash until another confirmed rally marked by solid leadership.

Charts courtesy www.stockcharts.com

PICTURED: The S&P 500 Index undercut its 200-day moving average (DMA) line yet managed a "positive reversal".  Prior lows define the next important near-term chart support below the 200 DMA line where more damaging losses would raise greater concerns for the market outlook. 

Stocks erased losses in the final hour of trading. The Dow recovered from a 277 point loss to close little changed at 17402. The S&P 500 eked out a 1 point gain to 2086. The NASDAQ managed to climb 7 points to 5044.

The major averages erased Chinese-induced losses, carried higher on the backs of tech and energy stocks. Overnight, Chinese officials surprisingly cut rates, sending the yuan down 1.6% after Tuesday’s 1.9% loss. However, six of 10 S&P 500 sectors finished higher as gains in energy, utilities and tech helped buoy markets. Exxon Mobil (XOM +1.7%) rose in sympathy with oil prices. Speculation of Fed rate hike delays helped utilities as Dominion (D +2.5%) posted a solid gain. Conversely, the same Fed rumors hurt banks, leaving JPMorgan (JPM -1.5%) down. Apple (AAPL ) snapped a losing streak to finish higher, leading a turnaround in tech stocks.

Retailers were laggards as Macy’s (M -5.1%) and American Apparel (APP -37.4%) plunged after dismal earnings reports from both. In M&A, Fidelity National (FIS +8.7%) jumped after agreeing to buy SunGard for $9.1 billion.

Economic data showed job openings slowed in June as hiring picked up, while the Treasury Department ran a wider-than-expected deficit in July.

Treasuries erased gains in late trading. Amid a $24 billion auction, the 10-year note fell 1/32 to yield 2.146%.

Commodities were broadly higher. WTI crude added 0.7% to $43.37/barrel despite slow inventory drawdowns. COMEX gold gained 1.4% to $1123.20/ounce amid dollar weakness.

The Bank Index ($BKX -1.56%) violated its 50-day moving average line decisively and the Broker/Dealer Index ($XBD -1.10%) undercut its 200-day moving average line intra-day before recovering. Both weighed on the major averages as they fell even further on Wednesday. Charts for both financial indexes were included in the Tuesday evening "Industry Group Watch" section while members were reminded of their importance as "leading indicators" for the broader market outlook (read here). The Retail Index ($RLX -0.53%) also suffered a modest loss on Wednesday.

The tech sector reversed early losses and the Networking Index ($NWX +0.44%), Semiconductor Index ($SOX +0.54%), and the Biotechnology Index ($BTK +0.60%) ended unanimously higher. The Oil Services Index ($OSX +1.61%) and Integrated Oil Index ($XOI +1.62%) both rebounded. The Gold & Silver Index ($XAU +6.85%) was a standout gainer once again while recovering from deep losses and multi-year lows.

Charts courtesy www.stockcharts.com 

PICTURED: The Networking Index ($NWX +0.44%) stalled below prior highs after rebounding from its 200-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
GSBC - NASDAQ Great Southern Bancorp BANKING - Savings and Loans	$40.89	-0.55 -1.33%	$41.38	59,801 181.22% of 50 DAV 50 DAV is 33,000	$42.99 -4.88%	4/27/2015	$40.94	PP = $40.54
								MB = $42.57
Most Recent Note - 8/10/2015 12:38:22 PM G - Consolidating near its 50 DMA line ($41.51) defining near-term support. Reported earnings +8% on -11% sales revenues for the Jun '15 quarter, raising fundamental concerns, and its color code was changed to green. Below the 50 DMA line its prior low ($40.46 on 7/08/15) defines the next important support where a violation would trigger a more worrisome technical sell signal. >>> FEATURED STOCK ARTICLE : Finding Support While Consolidating After Sub Par Quarter - 7/30/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
BOFI - NASDAQ B O F I Holding Inc BANKING - Savings andamp; Loans	$127.65	-2.60 -2.00%	$130.24	335,694 144.70% of 50 DAV 50 DAV is 232,000	$134.79 -5.30%	6/10/2015	$101.47	PP = $97.78
								MB = $102.67
Most Recent Note - 8/12/2015 6:57:25 PM G - Hovering near its all-time high following gains marked by above average volume. Previously noted with caution - "It may produce more climactic gains, however it is very extended from its prior base. Its recent low ($111.43 on 7/29/15) defines near term support above its 50 DMA line." >>> FEATURED STOCK ARTICLE : Extended and Perched Near High With Earnings News Due Soon - 7/27/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
AHS - NYSE A M N Healthcare Svcs DIVERSIFIED SERVICES - Staffing and Outsourcing Service	$34.31	-0.19 -0.55%	$34.82	604,427 89.02% of 50 DAV 50 DAV is 679,000	$36.34 -5.59%	8/5/2015	$34.50	PP = $32.53
								MB = $34.16
Most Recent Note - 8/10/2015 3:35:38 PM G - Rallied above its "max buy" level and its color code is changed to green. Prior highs in the $32 area define initial support to watch above its 50 DMA line. >>> FEATURED STOCK ARTICLE : Gap Up Gain Triggered Technical Buy Signal Following Earnings - 8/5/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
ILMN - NASDAQ Illumina Inc DRUGS - Biotechnology	$207.36	-1.23 -0.59%	$208.00	1,401,680 97.00% of 50 DAV 50 DAV is 1,445,000	$242.37 -14.44%	6/8/2015	$209.97	PP = $213.43
								MB = $224.10
Most Recent Note - 8/12/2015 7:09:42 PM G - Damaging losses below recent lows ($207) raised concerns and triggered a more worrisome technical sell signal. Found support and finished near the session high today after slumping near its 200 DMA line. >>> FEATURED STOCK ARTICLE : Support Found After Abrupt Pullback Following Earnings News - 7/24/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
JAZZ - NASDAQ Jazz Pharmaceuticals Plc DRUGS - Biotechnology	$183.60	+4.80 2.68%	$184.69	607,126 142.85% of 50 DAV 50 DAV is 425,000	$194.73 -5.72%	7/29/2015	$190.13	PP = $191.11
								MB = $200.67
Most Recent Note - 8/12/2015 6:51:29 PM G - Managed a "positive reversal" today after slumping near its 200 DMA line. Fundamental concerns were recently noted after it reported earnings +19% on +15% sales revenues for the Jun '15 quarter, below the +25% minimum earnings guideline (C criteria). It stalled after highlighted in yellow with pivot point cited based on its 4/27/15 high plus 10 cents in the 7/29/15 mid-day report (read here). >>> FEATURED STOCK ARTICLE : No Resistance Due to Overhead Supply For Drug Firm - 7/29/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
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
VRX - NYSE Valeant Pharmaceuticals DRUGS - Drug Manufacturers - Other	$244.03	-1.96 -0.80%	$245.67	3,042,655 184.29% of 50 DAV 50 DAV is 1,651,000	$263.81 -7.50%	7/14/2015	$236.75	PP = $246.11
								MB = $258.42
Most Recent Note - 8/12/2015 7:05:35 PM Y - Undercut its 50 DMA line then found prompt support and closed in the upper third of its intra-day range. Endured distributional pressure after wedging higher with recent gains lacking great volume conviction. Its 7/23/15 gap up above the pivot point triggered a new (or add-on) technical buy signal. >>> FEATURED STOCK ARTICLE : Holding Ground Following Latest Technical Breakout - 8/3/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
USNA - NYSE U S A N A Health Science DRUGS - Drug Related Products	$160.57	-1.30 -0.80%	$161.68	160,759 122.72% of 50 DAV 50 DAV is 131,000	$176.88 -9.22%	8/5/2015	$157.22	PP = $145.15
								MB = $152.41
Most Recent Note - 8/12/2015 7:07:16 PM G - Consolidating well above prior highs in the $145 area defining initial support to watch. Risk increases the further one chases a stock above prior highs. >>> FEATURED STOCK ARTICLE : Abrupt Retreat Following Breakout for Stock With Small Supply - 8/6/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
AMBA - NASDAQ Ambarella Inc ELECTRONICS - Semiconductor - Specialized	$110.05	-2.89 -2.56%	$112.30	3,849,735 87.75% of 50 DAV 50 DAV is 4,387,000	$129.19 -14.82%	5/1/2015	$75.99	PP = $77.49
								MB = $81.36
Most Recent Note - 8/12/2015 6:56:06 PM G - Undercut its 50 DMA line today yet found prompt support and rebounded to close near that important short-term average and finish in the upper third of its intra-day range. More damaging losses would raise serious concerns and trigger a worrisome technical sell signal. >>> FEATURED STOCK ARTICLE : Choppy Consolidation is Not a New Cup-With-Handle Base - 8/7/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
ACHC - NASDAQ Acadia Healthcare Inc HEALTH SERVICES - Specialized Health Services	$80.38	+0.10 0.12%	$80.61	568,869 75.95% of 50 DAV 50 DAV is 749,000	$85.62 -6.13%	5/27/2015	$73.90	PP = $74.19
								MB = $77.90
Most Recent Note - 8/11/2015 3:10:25 PM G - Gapped down today after proposing a Secondary Offering. Brief consolidation was not a sound base pattern of sufficient length. Reported strong sales and earnings increases with acceleration again for Jun '15 quarter. Its 50 DMA line and recent lows define important support. >>> FEATURED STOCK ARTICLE : Pullback Followed Another Strong Quarter Reported With Acceleration - 8/4/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
APOG - NASDAQ Apogee Enterprises MATERIALS and CONSTRUCTION - General Building Materials	$53.03	-0.17 -0.32%	$53.58	172,805 53.01% of 50 DAV 50 DAV is 326,000	$61.05 -13.13%	4/9/2015	$49.58	PP = $48.13
								MB = $50.54
Most Recent Note - 8/12/2015 7:11:28 PM G - Slumping further below its 50 DMA line, and a rebound above that short-term average is needed for its outlook to improve. Damaging losses below the recent low ($50.07 on 7/07/15) would raise greater concerns and trigger a worrisome technical sell signal. >>> FEATURED STOCK ARTICLE : Rebound Above 50-Day Moving Average Line - 7/31/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
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
JLL - NYSE Jones Lang Lasalle Inc REAL ESTATE - Property Management/Developmen	$174.39	-4.96 -2.77%	$177.75	421,686 150.60% of 50 DAV 50 DAV is 280,000	$179.97 -3.10%	6/4/2015	$172.34	PP = $174.93
								MB = $183.68
Most Recent Note - 8/12/2015 6:52:16 PM Y - Down with average volume today, testing support at its 50 DMA line. Recent gains above the pivot point lacked the minimum +40% above average volume necessary to trigger a new (or add-on) technical buy signal. >>> FEATURED STOCK ARTICLE : Recent Gains Lacked Volume Conviction; Earnings Report Soon Expected - 7/22/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
RH - NYSE Restoration Hardware Hld RETAIL - Home Furnishing Stores	$99.40	-0.32 -0.32%	$100.12	704,742 91.76% of 50 DAV 50 DAV is 768,000	$105.98 -6.21%	7/28/2015	$102.40	PP = $102.10
								MB = $107.21
Most Recent Note - 8/12/2015 7:02:37 PM Y - Undercut its 50 DMA line ($98.71) then found prompt support and finished in the upper third of its intra-day range. More damaging losses would raise greater concerns and trigger a worrisome technical sell signal. >>> FEATURED STOCK ARTICLE : Fundamental and Technical Action Improved Outlook - 7/28/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
ULTA - NASDAQ Ulta Salon Cosm & Frag SPECIALTY RETAIL - Specialty Retail, Other	$166.94	-1.57 -0.93%	$167.57	675,491 99.05% of 50 DAV 50 DAV is 682,000	$171.21 -2.49%	5/29/2015	$155.03	PP = $159.95
								MB = $167.95
Most Recent Note - 8/10/2015 3:28:29 PM Y - Small gap up today nearly challenging 52-week high. Consolidating well above prior highs in the $159 area defining initial support to watch on pullbacks. >>> FEATURED STOCK ARTICLE : Near "Max Buy" Level, But Recent Gains Lacked Great Volume Conviction - 7/20/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
LXFT - NYSE Luxoft Holding Inc Cl A Comp Sftwr-Spec Enterprs	$61.54	+1.50 2.50%	$61.68	269,683 110.07% of 50 DAV 50 DAV is 245,000	$63.56 -3.18%	5/26/2015	$51.90	PP = $57.40
								MB = $60.27
Most Recent Note - 8/10/2015 5:52:13 PM G - Posted a quiet gain today. Reporting Jun '15 earnings on Wednesday. Consolidating above 50 DMA line ($58.84) and prior highs in the $57 area. Subsequent violations would trigger technical sell signals. See the latest FSU analysis for more details and a new annotated graph. >>> FEATURED STOCK ARTICLE : Earnings News Often Leads to Greater Volume and Volatility - 8/10/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
PANW - NYSE Palo Alto Networks Computer Sftwr-Security	$171.00	-2.93 -1.68%	$174.30	2,727,257 189.00% of 50 DAV 50 DAV is 1,443,000	$200.55 -14.73%	3/27/2015	$146.44	PP = $149.45
								MB = $156.92
Most Recent Note - 8/12/2015 7:00:25 PM G - Undercut its prior low ($167.82 on 7/07/15) with another damaging volume-driven loss today raising greater concerns. Found support and rebounded to close in the upper-third of its intra-day range. >>> FEATURED STOCK ARTICLE : Wedging to New Highs After Brief Consolidation - 7/21/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I
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
INGN - NASDAQ Inogen Inc HEALTH SERVICES - Medical Instruments and Supplies	$48.89	+6.29 14.77%	$50.98	867,092 352.48% of 50 DAV 50 DAV is 246,000	$45.75 6.86%	8/12/2015	$49.01	PP = $45.85
								MB = $48.14
Most Recent Note - 8/12/2015 6:49:36 PM Y - Finished strong after highlighted in yellow with a pivot point cited based on its 6/23/15 high plus 10 cents (read here). Technically it broke out with a gap up and considerable gain backed by +252% above average volume while hitting a new 52-week high. Found support at its 50 DMA line and formed an orderly base above prior highs in the $40 area. Reported Jun '15 earnings +55% on 45% sales, its 4th consecutive quarterly earnings increase above the +25% minimum guideline (C criteria). Limited history and broader market weakness (M criteria) is a concern. See the latest FSU analysis for more details and a new annotated graph. >>> FEATURED STOCK ARTICLE : Finished Strong With Volume-Driven Breakout Gain - 8/12/2015  |  View all notes | Set NEW NOTE alert | Company Profile | SEC News | Chart | Request a new note C A  S  I