The major averages ended lower, experiencing their largest single-day decline since February, after consumer credit fell and concern about Greece defaulting accelerated. Volume totals on the NYSE and on the Nasdaq exchange were reported higher compared to Tuesday's totals which marked the latest distribution day for the major averages in recent weeks. Breadth was negative as decliners led advancers by about a 2-to-1 ratio on the NYSE, and by a 5-to-4 ratio on the Nasdaq exchange. New 52-week highs trumped new lows on both exchanges yet again. There were 52 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, down from  the 58 issues that appeared on the prior session.  A healthy crop of new leaders making new highs bodes well for any market rally, so the recent expansion in leadership has been a welcome post-holiday improvement.  However, the rising number of distribution days has raised some concerns.

Charts courtesy www.stockcharts.com

PICTURED: The Broker/Dealer Index ($XBD +0.63%) traded above its January high intra-day.

Intuitive Surgical Inc. (ISRG -$9.93 or -2.89% to $333.37) suffered a technically damaging loss today as it sank under its recent chart low ($338.52 on 3/26/10) and further below its 50-day moving average (DMA) line, raising more serious concerns and triggering more worrisome sell signals while volume increased to nearly twice its average daily trading total. A prompt repair of its 50 DMA line would be a reassuring sign of support, but until it rises back above that important short-term average the odds are in favor of a deeper consolidation and greater caution is in order. Based on the weakness it will be dropped from the Featured Stocks list tonight.  It was repeatedly noted that its gains in February and March lacked the substantial above average volume that would be truly indicative of institutional (I criteria) buying demand which can lead to a meaningful rally.  Since then, volume conviction clearly rose on the down sessions that negated its half-hearted rally from its prior base, and bringing on the latest technical damage to its chart.

Quarterly comparisons have not shown perfectly steady increases above the +25% guideline, yet the latest period ended December 31, 2009 showed a very impressive acceleration in sales revenues and earnings growth. It is due to report its next quarterly results on April 15th after the close, and while it may face an easy comparison versus the year ago sales revenues and earnings numbers, expectations are already lofty.  The number of top-rated funds owning its shares has risen from 283 in Mar '09 to 313 in Dec '09, which is reassuring concerning the investment system's I criteria.  ISRG was featured again most recently in the 1/22/10 mid-day report (read here), returning after some time off the Featured Stocks list. Its annual earnings history (the A criteria) has been very impressive. Earlier notes had outlined technical deterioration before and when it was last dropped from the Featured Stocks list on 6/10/08. ISRG traded up more than 13-fold since first featured in yellow in CANSLIM.net reports in the summer of 2004.

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.