The major averages rebounded from small losses in the morning and made progress for the rest of the session, closing with impressive gains. Breadth was positive as advancers decisively led decliners by about a 4-to-1 ratio on the NYSE and on the Nasdaq exchange. Volume was reported higher on the NYSE and on the Nasdaq exchange, which was a reassuring sign of institutional accumulation. Also, 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, doubling the total of 6 issues that appeared on the prior session.  This was a welcome improvement, while an even greater expansion in the new highs list in the weeks ahead would offer more encouraging news for growth oriented investors.

Retailers were among Thursday's leading gainers after Bed Bath & Beyond (BBBY +9.48%) gapped up following better-than-expected first quarter earnings, however the home furnishings firm's medicocre ranks and sub par fundamentals fall far short of the investment system's criteria for strong buy candidates. Fitch downgraded the state of California's long-term general obligation bond rating to "A-" from "A" and placed the bonds on Rating Watch negative "based on the magnitude of the state's financial and institutional challenges and persistent economic and revenue weakening." New economic data also included initial jobless claims for the week ending June 13 at 627,000, which was more than expected and up from the previous week. Continuing claims were up to 6.74 million, which exceeded forecasts yet is off record highs.  The final reading for first quarter GDP showed a 5.5% annualized decline, which is a slight improvement from the 5.7% annualized decline previously reported.

Federal Reserve Chairman Ben Bernanke told Congress he did not pressure Bank of America (BAC -unch) into acquiring Merrill Lynch in a deal that ultimately cost taxpayers $20 billion.  Bank of America said it raised more than $12 billion in common equity on Thursday as it exchanged $3.9 billion of preferred stock in a public offering and $10.7 billion in private transactions. It issued about 989 million common shares.

The Treasury Dept's $27 billion auction of 7-year Notes drew better-than-expected results. The benchmark 10-year Note traded up more than one full point, knocking the yield to just above 3.5%, while 30-year Bonds were bid almost two points higher, dropping its yield to about 4.3%.

PICTURED: The S&P 500 Index's recent gains have been backed by light volume while it is struggling to stay above its converging 50-day and 200-day moving average lines.

Charts courtesy www.stockcharts.com

PICTURED: The Broker/Dealer Index ($XBD +3.17%) on Thursday posted a 3rd consecutive gain, closing back above its 50 DMA line.

Shanda Interactive Ent Ltd's (SNDA $+1.55 or +2.72% to $58.45) color code was changed to yellow based on its resilience after recently noted distributional pressure. It posted a gain today on lighter volume after a considerable gain on higher volume helped promptly repair this week's violation of its 50-day moving average (DMA) line and prior chart highs -weakness which had raised concerns and triggered a technical sell signal. However, any subsequent deterioration under its short-term average and back into the prior base could be a more ominous sign, especially if volume swells and its latest low near $50 is violated.  A closer look at its chart below identifies a worrisome "island reversal" pattern.  In this case, its 6/01/09 gap up gain on heavy volume, followed by its 6/15/09 gap down and loss on heavy volume, completed a bearish island reversal. This week's gains have served to fill its latest gap and help it avoid slumping badly into its prior base, which is a somewhat encouraging sign of support.

Just after featured in the June 2009 issue of CANSLIM.net News, SNDA quickly got too extended from a proper buy point. In the stock's Featured Stock Update section appearance on June 3rd it was noted that, "Patient investors may watch for a pullback near its 50-day moving average (DMA) line, an important support level which has not been tested since breaking out above resistance at $34.00 back in March." Investors who may be considering SNDA trades now should be sure to review the additional analysis that was included in the "What to Look Out For" section of the June 2009 issue of CANSLIM.net News - 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.