The major averages traded between positive and negative territory after consumer confidence and home prices topped estimates. Volume totals on the NYSE and on the Nasdaq exchange were reported mixed; higher on the Nasdaq and lower on the NYSE while advancers narrowly led decliners on the NYSE and on the Nasdaq exchanges. There were 44 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 31 issues that appeared on the prior session. New 52-week highs outnumbered new lows on both exchanges yet again.

Housing stocks sold off after the S&P/Case-Shiller index of home prices was released. The 20-city home-price index unexpectedly rose +0.3% in January. The closely watched index tracks monthly changes of home prices in 20 metropolitan regions across the country and is used as a good proxy for the underlying health of the residential real estate market. Elsewhere, the Conference Board released its consumer sentiment index which rose to +52.5 in March, up from +46.4 in February. Overseas, Standard & Poor’s cut Iceland’s currency's credit rating as the small country continues to make its way out of the worst economic crisis in several generations. In Europe, it was a bit disconcerting to see Greece fail to sell half the 12-year bonds needed to raise additional funds.

The fact that there have only been two distribution days since the follow-though-day (FTD) bodes well for the current 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.

PICTURED: The S&P 600 Small Cap Index has recently been rallying up through resistance at an old floor of support, which is an encouraging sign of ongoing strength in the area of the market where we are most focused on new buy candidates under this investment system's guidelines. The monthly chart above illustrates how the Small-Cap Index also led the major averages in the recovery following the 2000-2002 Bear Market.  It actually made it into new high ground before the end of 2003, and rallied into new high ground for 4 more years.  In contrast, the benchmark S&P 500 Index (not shown) barely made it above its 2000 high in October 2007, then another Bear Market began.

The Healthcare Index ($HMO +0.70%) was among Tuesday's best gainers, but mixed action limited the major averages' progress.  Energy-related shares posted small gains and lifted the Integrated Oil Index ($XOI +0.28%) and Oil Services Index ($OSX +0.32%) for modest gains. The tech sector showed mixed action and was mostly indecisive as the Internet Index ($IIX +0.37%) and Semiconductor Index ($SOX +0.69%) posted small gains while the Networking Index ($NWX -0.10%) and Biotechnology Index ($BTK -0.14%) edged lower. The Broker/Dealer Index ($XBD +0.03%) and Retail Index ($RLX +0.10%) eked out tiny gains.  Meanwhile, the Bank Index ($BKX -0.81%) and Gold & Silver Index ($XAU -0.50%) were among the session's laggard groups.

Charts courtesy www.stockcharts.com

PICTURED: The Networking Index made substantial progress after clearing its January 2010 highs.

Priceline.com Inc. (PCLN +$0.32 or +0.13% to $255.99) posted a small gain today on light volume for a new high close. Its considerable gap up on 3/25/10 for a solid gain was backed by more than 2 times average volume, leaving this high-ranked Leisure-Services firm extended more than +5% above its latest pivot point. It has no resistance remaining due to overhead supply and can easily rise unhindered, but disciplined investors avoid chasing stocks outside of the investment system's guidelines. Its color code was changed to green after getting extended from its latest sound base pattern. Meanwhile, prior chart highs in the $245-246 area define an initial support level to watch above its earlier highs and its 50-day moving average (DMA) line. 

PCLN previously appeared in this FSU section on 2/18/10 under the headline "Big Gap Up Gain On 4 Times Average Volume" when triggering a technical buy signal while rising from a 9-week base. It was still color coded yellow on 3/10/10 when it made a subsequent FSU section appearance under the headline "Priceline Remains Perched Near All-Time Highs Following Latest Breakout", but its color code was changed to green after blasting above its "max buy" level.

In the most current (C criteria) quarter ended December 31, 2009 its sales revenues and earnings showed impressive acceleration yet again with increases well above the +25% minimum guideline. A summary of CANSLIM.net's past coverage and the stock's subsequent action was published on 11/07/08 under the headline "Multiple Sell Signals Preceded Big Price Decline."  That write-up explained the stock's weak action after it had been dropped from the Featured Stocks list after its 200 DMA violation on July 2, 2008.  PCLN was first featured on Friday, November 09, 2007 in the CANSLIM.net Mid Day Breakouts Report after gapping up over the $100 threshold (read here).

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.