Two of the three major averages negatively reversed on Thursday and they collectively ended near their intra-day lows. The volume totals on the NYSE and on the Nasdaq exchange were reported slightly higher compared to Wednesday's totals. The Dow Jones Industrial Average eked out a small gain for the session, and the S&P 500 Index and Nasdaq Composite Index ended with very small net losses. The action was suggestive of distributional pressure after the recent gains for new recovery highs on lighter than average volume.  Decliners led advancers by about a 3-to-2 ratio on the NYSE and on the Nasdaq exchange. There were 58 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 than the 29 issues that appeared on the prior session. New 52-week highs again overwhelmingly trumped new lows on both exchanges.

French President Nicolas Sarkozy agreed with German Chancellor Angela Merkel’s proposal to ask the IMF to help rescue Greece. As expected, the euro continued to plunge on the news as investors fear that other European nations will soon need to be bailed out. The European Union held a summit in Brussels that came close to officially calling for the IMF to provide emergency funds for Greece in addition to bilateral loans from other European countries. European Central Bank President Jean-Claude Trichet said the bank will extend its emergency collateral rules beyond 2010 which will help Greece emerge from the worst economic crisis since WWII. In other news, Dubai said that it plans to restructure $9.5 billion in Dubai World debt. 

In the US, stocks rallied after the Labor Department said initial jobless claims fell to the lowest level in six weeks and Fed Chief, Ben Bernanke, testified on Capital Hill. Weekly jobless claims showed that first-time jobless applications slid by -14,000 to 442,000 in the week ended March 20 which was lower than expected. The stronger than expected jobs data is a healthy sign that the economy continues to recover. It was also reassuring to see a new batch of leaders breakout of sound bases as the major averages continue advancing.The fact that there has only been two distribution days since the follow-though-day (FTD) bodes well for this nascent rally. It is also a welcome sign to see the market continue to improve as investors digest the latest round of stronger than expected economic and earnings data. Remember that now that a new rally has been confirmed, the window is open to proactively be buying high quality breakouts meeting the investment system guidelines. Trade accordingly.

Charts courtesy www.stockcharts.com

PICTURED: The Retail Index ($RLX +1.16%) hit another new recovery high today.

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