Heading into a three-day weekend, the major averages snapped a four week losing streak.  While the EU said it will help Greece with its ballooning budget deficits, investors were rattled by news that China ordered its banks to set aside more money for reserves. This fanned concerns that global growth may slow as China battles inflation. Friday's mixed session was marked by higher volume totals on both exchanges.  Advancers led decliners by a 3-to-2 ratio on the Nasdaq exchange and by a narrow 8-to-7 margin on the NYSE.  New 52-week highs outnumbered new lows on both exchanges.  There were 18 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 13 issues that appeared on the prior session.

Stocks closed lower on Monday after concern spread that several European countries may default on their debt. Greece, Spain and Portugal are the three primary suspects for the latest sovereign debt crisis. The primary concern is that these countries will need outside assistance to stay afloat as they make their way through the worst recession since WWII. Meanwhile, the Congressional Budget Office expects America’s debt to reach +65% of US GDP this year which would still be below the +77% of GDP the European Commission expects for Germany, U.K. is running closer to +80% and Japan is in the lead with a whopping +180%. 

Stocks enjoyed sharp gains on Tuesday as the US dollar fell on speculation that Greece will receive European aid to tackle its massive budget deficit. European Central Bank President, Jean-Claude Trichet, unexpectedly left a meeting in Sydney one day ahead of schedule and returned to Europe to discuss this issue. In related news, European Commission President Jose Barroso supported the euro when he directly said that investors would be wrong to bet against it.Stocks closed slightly lower on Wednesday as the world awaited the EU's decision.

On Thursday, the EU stepped up and said they would help Greece tackle the worst economic crisis the continent has experienced since the euro was established over 11 years ago. It is important to note that Portugal and Spain's growing budget deficits have yet to be addressed, which could come back and haunt the EU later this year.

Domestically, the Labor Department said that weekly jobless claims unexpectedly dropped last week. The weaker than expected report is a net positive for the ailing jobs market and bodes well for the economy.

PICTURED: The Nasdaq Composite Index posted a weekly gain, ending a 4-week losing streak and trying to make a stand.  Not long ago it was making headway above its March - July 2008 lows, which was an encouraging sign.  That area may now serve as a support level, however, any breach of recent lows would be an ominous sign and would kill the latest rally attempt.

Charts courtesy www.stockcharts.com

PICTURED: The Internet Index ($IIX +0.09%) slumped under its 50-day moving average (DMA) line during the current market correction.  Prior chart lows and its 200 DMA line define the nearest support. This Index is only -6.0% from its peak after rallying +94.8% from its March 2009 low.

Bio-Reference Laboratories, Inc. (BRLI +$0.01 or +0.03% to $39.43) is perched less than -4% from its 52-week high, consolidating for at least 5-weeks above support at its 50-day moving average (DMA) line. It was featured in yellow in today's mid-day report (read here). Very little resistance remains due to overhead supply. Earnings growth and sales revenues growth has accelerated, with increases better than the +25% minimum guideline in recent quarters. Fundamentals are favorable with respect to the C and A criteria. The high-ranked Medical/Dental Services firm has only 13.9 million shares outstanding (S criteria) and has average daily volume under 100,000 shares, which could contribute to greater price volatility in the event of more decisive institutional buying or selling. The number of top-rated funds owning its shares rose from 77 in Mar '09 to 87 in Dec '09 which is somewhat reassuring in regard to the I criteria of the investment system. Gains above its pivot point with at least +50% above average volume could trigger a technical buy signal, however, the M criteria is an overriding concern until a follow-through-day occurs.

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.