The major averages traded between positive and negative territory only to end lower one day before the third quarter comes to an end. As expected, volume was higher on Tuesday from Monday's light holiday levels. That constituted a distribution day for the major averages. Decliners led advancers by a narrow margin on the NYSE and by nearly a 3-to-2 ratio on the Nasdaq exchange. There were 23 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher from the 20 issues that appeared on the prior session. New 52-week highs outnumbered new 52-week lows on both exchanges, while new 52-week lows were in the single digits yet again.

Stocks opened higher after Walgreen Co. (WAG +9.24%) reported their latest quarterly results. The stock gapped higher and hit a fresh 17-month high as rising sales of prescription drugs boosted results. However, the bears quickly showed up and sent the popular averages back into the red. Leading stocks fared well today which was a net positive for this rally. A few high ranked growth stocks were featured in yellow in today's CANSLIM.net's Mid Day Breakouts Report (click here) as they triggered fresh technical buy signals- which is always a welcomed sign.

Turning to the economic front, the S&P/Case-Shiller home-price index rose +1.2% in July from the prior month which was the latest round of healthy housing data. The S&P/Case- Shiller index measures home prices in 20 major metropolitan areas and today's rise was the largest monthly increase in nearly four years. So far, the benchmark S&P 500 index has rallied nearly +60% from its 12-year low in March. This pushed valuations in the index to about 20 times the reported profits from continuing operations, according to the latest data provided by Bloomberg.com. This is the highest p/e level for S&P 500 companies since 2004. Remember that paying attention to p/e ratios is a secondary component because studies show that the greatest stock market winners have sported both high and low p/e's. 

PICTURED: The S&P 500 Index negatively reversed on higher volume than the prior session. This is the second distribution day in less than one week. 

Charts courtesy www.stockcharts.com

PICTURED: The Biotechnology Index ($BTK -1.92%) was among today's tech sector laggards, consolidating toward its 50-day moving average line.

Credit Acceptance Corp (CACC +$2.90 or +9.68% to $32.87) gapped up for a second consecutive session and hit a new 52-week high as it rallied above its pivot point today, closing in the upper half of its trading range. The considerable gain backed by more than 2 times average volume triggered a technical buy signal. There is not any overhead supply to hinder its upward price progress now. It is near multi-year chart highs, and its ability to clear its 2006-2007 highs ($33-34) and reach new all-time highs would be a very reassuring sign to be watching for in the days ahead.  The high-ranked Finance-Consumer/Commercial Loans firm was featured earlier today in yellow in the mid-day report (read here). Disciplined investors would avoid chasing the stock more than +5% above its pivot point.  Any reversal leading to a close below its prior high closes would raise concerns, and as always, a sound loss-limiting strategy requires investors to sell any stock if it ever falls more than -7% from the price paid.

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.