The major averages closed in the upper half of their respective trading ranges this week after first falling to fresh 2010 lows. On Friday the volume totals in the US markets were mixed, reported slightly higher compared to Thursday's totals on the NYSE while the Nasdaq exchange's volume total was lower.  Decliners led advancers by about a 2-to-1 ratio on the NYSE and on the Nasdaq exchange. There were 12 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 9 issues that appeared on Tuesday. New 52-week highs outnumbered new 52-week lows on the NYSE while the totals were even on the Nasdaq exchange.

Stocks closed lower on Monday after the National Association of Realtors said sales of existing homes (i.e. previously owned homes) rose in April to the highest level in five months. The report said buyers scrambled to buy the homes before the government's tax credit expired. Sales increased +7.6% to a 5.77 million annual rate. This was the highest reading since November 2009 which was the month the incentive was first due to expire. The market closed mixed on Tuesday after geopolitical tensions escalated between North and South Korea.

On Wednesday the major averages and the euro negatively reversed (opened higher but closed lower) after Italy announced that it will restructure $30 billion in debt and Germany's bond auction was less than stellar. In the US, the economic news was healthy as new home sales and durable goods both jumped to multi year highs. New home sales rose +15% to an annual pace of +504,000 last month. This was the highest reading in two years which bodes well for the ailing housing market. The report showed that the median price of a new home fell to $198,400 which was the lowest level since December 2003. It was interesting to see that the vast majority of new sales occurred in houses costing less than $300,000 which reflects demand from first-time buyers due to the now expired tax credit. Elsewhere, the Commerce Department said durable goods orders jumped +2.9% which was the highest reading in at least three years.

Stocks surged around the world after China said it remains a long-term investor in Europe, which helped the euro snap a losing streak and allowed China's stock market to score a follow-through day (FTD). In the US, two important economic reports were released: gross domestic product (GDP) and weekly jobless claims. The government said the US economy grew at a slower pace than previously expected in the first quarter and jobless claims fell less than economists expected. First quarter GDP rose +3% compared to last month's reading of a +3.2% increase. Meanwhile, the Labor Department said, initial jobless claims fell by -14,000 to 460,000 in the week ended May 22 which was lower than the Street's forecast of 455,000. On Friday, stocks ended lower as the market prepared for the long holiday weekend.

Friday marked Day 4 of a new rally attempt for the benchmark S&P 500 Index and Day 2 for the other major averages. That said, as long Tuesday's lows are not breached in the S&P 500, the window is now opened for a proper follow-through day (FTD) to occur. However, if at anytime Tuesday's S&P 500 Index lows are breached, then the day count will be reset. What does all of this mean for investors? Simple, the market remains in a correction which reiterates the importance of adopting a strong defense stance until a new rally is confirmed. Trade accordingly.

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PICTURED: The Nasdaq Composite Index's 5/27/10 gain marked Day 1 of its newest rally attempt after the 5/25/10 low undercut its 5/21/10 low.  For two weeks in a row the tech-heavy index traded below its 200-day moving average (DMA) line, yet closed the week above that important long-term average.

Charts courtesy www.stockcharts.com

PICTURED: The Oil Services Index ($OSX -5.22%) closed near its 2010 low after a considerable loss erased the 3 prior gains.

When it was last shown in this FSU section on 5/13/10 under the headline "Put Latin-American Internet - eCommerce Firm On Watch List an annotated graph showed its negative reversal for a loss on higher volume, an indication it was encountering distributional pressure while challenging previously stubborn resistance. The Latin American Internet - eCommerce firm was featured in yellow in the 5/13/10 mid-day report (read here) and noted as it traded within 5 cents of its 52-week high. It has found great support at its long-term 200-day moving average (DMA) line, including earlier in the year. The high-ranked leader's pivot point is based upon its 12/28/09 high plus ten cents. Top-rated funds owning an interest rose from 62 in Dec '08 to 101 in Mar '10, which is encouraging concerning the I criteria. Its strong quarterly earnings and annual earnings history satisfy the C and A criteria.  Disciplined investors will watch for a proper technical buy signal.  It is an ideal candidate for one's watch list while awaiting the new rally effort's confirmation in the form of a sound follow-through day of gains from at least one of the major averages on higher volume.

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.

***Last / Change / Volume data in this table is the closing quote data***

Symbol/Exchange Company Name Industry Group	PRICE	CHANGE (%Change)	Day High	Volume (% DAV) (% 50 day avg vol)	52 Wk Hi % From Hi	Featured Date	Price Featured	Pivot Featured
								Max Buy
BIDU - NASDAQ Baidu Inc Ads INTERNET - Internet Information Providers	$73.21	-0.29 -0.39%	$74.20	10,410,781 61.11% of 50 DAV 50 DAV is 17,036,100	$82.29 -11.03%	1/13/2010	$43.13	PP = $42.68
								MB = $44.81
Most Recent Note - 5/28/2010 4:08:00 PM G - Held its ground today after a 5/27/10 gap up. It is extended from any sound base, consolidating above its 50 DMA line. A worrisome negative reversal from its all-time high on 5/13/10 followed a 10:1 stock split. >>> The latest Featured Stock Update with an annotated graph appeared on 5/14/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
BRLI - NASDAQ Bio Reference Labs Inc HEALTH SERVICES - Medical Laboratories and Researc	$22.87	-0.09 -0.39%	$23.38	120,014 63.77% of 50 DAV 50 DAV is 188,200	$24.67 -7.31%	2/12/2010	$39.02	PP = $20.49
								MB = $21.51
Most Recent Note - 5/28/2010 4:10:46 PM G - Finished the week above its 50 DMA line, quietly consolidating just -7% from its all-time high. >>> The latest Featured Stock Update with an annotated graph appeared on 5/26/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
CRM - NYSE Salesforce.Com Inc INTERNET - Internet Software and Services	$86.53	-0.47 -0.54%	$87.50	2,353,891 114.41% of 50 DAV 50 DAV is 2,057,400	$89.84 -3.68%	3/5/2010	$72.28	PP = $75.53
								MB = $79.31
Most Recent Note - 5/28/2010 4:12:35 PM G - Perched -3% from its all time high. Recent gains including its positive reversal on 5/21/10 are signs of institutional support recently showing up near its 50 DMA line. For the quarter ended April 30, 2010 it showed only a +7% earnings per share increase, marking its first increase below the +25% minimum guideline in years. >>> The latest Featured Stock Update with an annotated graph appeared on 5/17/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
LL - NYSE Lumber Liquidators Hldgs RETAIL - Home Improvement Stores	$29.51	-0.29 -0.97%	$29.96	381,556 102.49% of 50 DAV 50 DAV is 372,300	$33.41 -11.67%	4/22/2010	$29.87	PP = $29.03
								MB = $30.48
Most Recent Note - 5/28/2010 4:14:02 PM G - Gains with light volume this week helped it rebound above its 50 DMA line and back above its December '09 highs, yet it remains about -11% off its 52-week high and faces some resistance. It has been quietly consolidating for about 5 weeks since its "negative reversal" after hitting an all-time high on 4/26/10 was noted. >>> The latest Featured Stock Update with an annotated graph appeared on 5/19/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
LOPE - NASDAQ Grand Canyon Education DIVERSIFIED SERVICES - Education and; Training Services	$24.56	-0.88 -3.46%	$25.48	402,388 98.31% of 50 DAV 50 DAV is 409,300	$28.46 -13.70%	4/13/2010	$27.71	PP = $27.33
								MB = $28.70
Most Recent Note - 5/28/2010 4:17:38 PM G - Heavy distributional pressure this week led to a close below its 50 DMA line which is now acting as a resistance level. Now -13% off its 52-week high, it has been consolidating for a 7-week period since peaking on 4/13/10. Technically, its 4/29/10 low of $23.66 is the next important chart support. >>> The latest Featured Stock Update with an annotated graph appeared on 5/27/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
Symbol/Exchange Company Name Industry Group	PRICE	CHANGE (%Change)	Day High	Volume (% DAV) (% 50 day avg vol)	52 Wk Hi % From Hi	Featured Date	Price Featured	Pivot Featured
								Max Buy
MELI - NASDAQ Mercadolibre Inc INTERNET - Internet Software and; Services	$51.87	+0.41 0.80%	$52.54	583,511 94.42% of 50 DAV 50 DAV is 618,000	$55.75 -6.96%	5/13/2010	$54.21	PP = $55.85
								MB = $58.64
Most Recent Note - 5/28/2010 4:45:18 PM G - Today was its 4th consecutive gain, rallying above its 50 DMA line and finishing the week only -7% off its 52-week high. Its 200 DMA and recent lows define important near-term chart support. >>> The latest Featured Stock Update with an annotated graph appeared on 5/28/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
ROVI - NASDAQ Rovi Corp COMPUTER SOFTWARE andamp; SERVICES - Security Software andamp; Services	$37.34	-0.40 -1.06%	$37.73	963,088 79.36% of 50 DAV 50 DAV is 1,213,500	$40.06 -6.79%	4/20/2010	$37.62	PP = $38.60
								MB = $40.53
Most Recent Note - 5/28/2010 4:49:46 PM G - Consolidating just -7% from its 52-week high after 3 down weeks with above average volume in the past 4 weeks. Hovering near its 50 DMA line which has acted as resistance. Its recent chart low (5/25/10 low $35.09) defines near-term chart support above its 200 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 5/24/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
SUMR - NASDAQ Summer Infant Inc CONSUMER NON-DURABLES - Personal Products	$8.25	+0.75 10.00%	$8.42	376,075 678.84% of 50 DAV 50 DAV is 55,400	$8.21 0.49%	5/4/2010	$6.85	PP = $7.09
								MB = $7.44
Most Recent Note - 5/28/2010 5:03:48 PM G - Considerable gain today with heavy volume, spiking to a new all-time high and getting extended from a sound base. Color code was changed to green as rallied well above the "max buy" level previously cited. >>> The latest Featured Stock Update with an annotated graph appeared on 5/21/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M
ULTA - NASDAQ Ulta Salon Cosm & Frag SPECIALTY RETAIL - Specialty Retail, Other	$25.58	+0.99 4.03%	$26.00	636,297 169.91% of 50 DAV 50 DAV is 374,500	$25.76 -0.70%	5/28/2010	$25.58	PP = $25.86
								MB = $27.15
Most Recent Note - 5/28/2010 5:08:56 PM Y - Considerable gain today for a new high close. Color code is changed to yellow with new pivot point cited based on its 4/26/10 high plus ten cents. >>> The latest Featured Stock Update with an annotated graph appeared on 5/20/2010. Click here. View all notes | Alert me of new notes | CANSLIM.net Company Profile | SEC | Zacks Reports | StockTalk | News | Chart |  Request a new note C A N S L I M