The major averages ended mostly lower after weakness emerged in the closely followed financial and housing sectors. Volume totals on Monday were reported mixed compared to Friday's totals, slightly higher on the NYSE and slightly lower on the Nasdaq exchange. Decliners led advancers by a small margin on both exchanges. Meanwhile, new 52-week highs easily trumped new 52-week lows. In addition, it was encouraging to see new lows fall to the single digits on both exchanges. There were 91 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 80 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally.

The major averages ended near their intra-day lows after several high profile financial and housing stocks suffered distribution. BlackRock, Inc. (BLK -8.56%) gapped down and hit a fresh multi-month low on monstrous volume after reporting lackluster quarterly results. Goldman Sachs Group Inc. (GS -3.41%) got smacked on above average volume one day before several key personnel are slated to testify on Capital Hill regarding the ongoing SEC investigation. Meanwhile, housing stocks, another leading group in this 9-week rally (since the March 1st follow-through-day), negatively reversed on above average volume, which suggests a pullback may be in their future.

It is important to note that the major averages have been steadily rallying since early February and a pullback of some sort should be expected. However, until that pullback arrives, the market deserves the bullish benefit of the doubt. Trade accordingly.

Charts courtesy www.stockcharts.com

PICTURED: The Healthcare Index ($HMO -2.70%) fell near its 50-day moving average and recent chart lows. More damaging losses could be a bad sign for healthcare stocks. The group has been struggling since President Obama signed his landmark health care reform legislation into law on March 23, 2010, leaving the outlook for corporate earnings in the healthcare industry unclear.

Lumber Liquidators Hldgs (LL -0.12 or -0.38% to $31.87) traded up to new all-time high today, but it erased the whole gain and closed near the session low for a worrisome "negative reversal" and small loss with heavy volume. The action was indicative of distributional pressure, as selling offset any new buying efforts.  Patient investors might watch for a chance to accumulate shares on light volume pullbacks, rather than chasing it more than +5% above its old highs or pivot point.  Sequentially is quarterly comparisons show accelerating sales revenues and earnings +40% and +47% in the Sep and Dec '09 quarterly comparisons, respectively, versus the year ago periods. It is due to report earnings before the open on Wednesday, 4/28/10.

LL quickly got extended beyond the "max buy" guideline used by disciplined investors after it was recently featured at $29.87 in the 4/22/10 the mid-day report (read here) with a timely note as it was - "rising from an orderly cup shaped pattern (without a proper handle) formed since last noted on 12/17/09. It rallied steadily after a 'breakaway gap' on 8/05/09 helped it clear stubborn resistance in the $17 area. Quarterly sales and earnings increases have recently shown encouraging acceleration while growth rates have previously been noted as below the investment system's guidelines."  The number of top-rated funds owning its shares rose from 25 in Dec '09 to 53 in Mar '10, an encouraging sign concerning the I criteria of the fact-based system.

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.