The major averages negatively reversed (opened higher and closed lower) this week after encountering resistance near their respective 50-day moving average (DMA) lines. The current rally is under pressure after the major averages fell back below their respective 200 DMA lines and suffered a series of ominous distribution days. On Friday, volume totals were reported higher on the NYSE and the Nasdaq exchange compared to Thursday's levels, inflated due to the annual re-balancing in the small cap Russell 2000 Index. Advancers trumped decliners by more than a 2-to-1 on the NYSE and on the Nasdaq exchange. There were only 9 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 2 issues that appeared on the prior session. Leadership has evaporated, and without a healthy crop of leaders hitting new highs it is hard for the major averages to sustain a rally. New 52-week highs outnumbered new 52-week lows on the NYSE but trailed on the Nasdaq exchange.

PICTURED 1: The S&P 600 Small-Cap Index bounced at its 200 DMA line on Friday (*volume is not updated on the graph shown).  A downward trendline may act as resistance while a subsequent rally above its 50 DMA line and recent chart high would help the outlook improve.  Notice that the 50 DMA line is well above the 200 DMA line for this small-cap index.

Stocks opened sharply higher on Monday but closed lower after The People's Bank of China pledged on June 19 to make the yuan more flexible. The major averages negatively reversed after encountering resistance near their respective 50 DMA lines and spent the week pulling back. On Tuesday, both the Dow Jones Industrial Average and the benchmark S&P 500 Index close below their respective 200 DMA lines only one week after the latest follow-through day (FTD) confirmed a new rally. In our view, this put the latest rally under pressure and suggested lower prices may likely follow. The selling accelerated after the National Association of Realtors said sales of previously owned homes fell -2.2% last month and the euro fell for a second consecutive day.

The selling continued on Wednesday as investors digested dismal housing data and the Fed left rates unchanged as the economy continues to recover from the worst financial crisis since the Great Depression. The Commerce Department said purchases of new homes plunged nearly -33% to an annual pace of 300,000 last month as the government's tax credit expired. The report also showed that the median home price slid to just over $200,000 and prior months readings were downwardly revised. The overtly weak reading left many to question the health of the already fragile economic recovery. In addition, anyone watching housing stocks in recent weeks should now expect dismal news (possibly a double dip in the ailing housing market) to continue in the near future.

On Thursday, stocks fell in heavy trade sending the Nasdaq Composite and small cap Russell 2000 Index below their respective 200 DMA lines, which bodes poorly for the latest rally attempt. Before Thursday's opening bell, two separate government reports dragged stocks lower: unemployment claims fell from a two-month high while durable-goods orders fell -1.1%. Stocks closed modestly higher on Friday while the much-anticipated financial regulatory (FinReg) bill is getting close to passing.

Technically, the fact that the Dow Jones Industrial Average, S&P 500, Nasdaq Composite, and Russell 2000 Index all closed below their respective 200-day moving average (DMA) lines this week bodes poorly for the last rally attempt. Additionally, this unanimously ominous action suggests the market may retest its recent lows. Looking forward, the 50 DMA line may act as stubborn resistance and this month's lows should act as support. Since the June 15, 2010 follow-through day (FTD), this column has steadily noted the importance of remaining very selective and disciplined because all of the major averages are still trading below their downward sloping 50-day moving average (DMA) lines. This week's sell-off simply confirms that view. Trade accordingly.

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PICTURED 2: The NYSE Composite Index has shown a bearish signal this week as its 50 DMA line crossed under its 200 DMA line. The last time the index was shown in this commentary was on May 4th, when the NYSE Composite Index was the first substantial index to violate its 50 DMA line (read here). Immediately afterward, all of the major averages violated their respective 50 DMA lines.  Time will tell whether the major averages follow along and display the same worrisome signs in the weeks ahead.

Strength from the financial groups helped to underpin the major averages' gains on Friday as the Bank Index ($BKX +2.91%) and Broker/Dealer Index ($XBD +1.39%) rose.  Gains from the Biotechnology Index ($BTK +1.80%) and Oil Services Index ($OSX +1.84%) were also a positive influence on the market, along with a smaller gain from the  Retail Index ($RLX +0.58%).  The tech sector was quiet as the Semiconductor Index ($SOX -0.04%) and Internet Index ($IIX +0.09%) showed little change, and there was modest weakness leading to small losses for the Networking Index ($NWX -0.29%), Integrated Oil Index ($XOI -0.30%), and Healthcare Index ($HMO -0.12%) 

Charts courtesy www.stockcharts.com

PICTURED: The Gold & Silver Index ($XAU +3.61%) was a standout gainer as it posted a considerable gain on Friday, rallying near previously stubborn resistance.

Ulta Salon Cosmetics & Fragrance, Inc. (ULTA +$0.50 or +2.05% to $24.92) closed near the session high today, making a positive reversal after dipping near its 50 DMA line. It has been quietly consolidating since a negative reversal from an all-time high on 6/21/10. On 6/11/10 it completed a Secondary Offering which may hinder upward price progress for the near-term. For now it remains an ideal candidate for investors' watch lists, awaiting confirming gains for a new high close with heavy volume for a fresh technical buy signal. 

ULTA made very little headway since the detailed Stock Bulletin with annotated graph was published soon after it was featured in the 3/12/10 mid-day report (read here) as a considerable gain with heavy volume helped it reach a new 52-week high. It was then noted as it rose from an 8-week cup shaped base following stronger results for the quarter ended January 31, 2010.

This high-ranked leader in the Retail - Misc group which has shown accelerating sales revenues increases with strong quarterly earnings increases above the +25% guideline in the 3 latest comparisons (satisfies the C criteria). The number of top-rated funds with an ownership interest has grown from 49 funds in March '09 to 80 funds as of Mar '10 which is an encouraging sign of increasing institutional interest (the I criteria). Management's 36% ownership stake (after the latest offering) still keeps the company's directors very motivated to look after and build shareholder value.

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
AAPL - NASDAQ Apple Inc COMPUTER HARDWARE - Personal Computers	$266.70	-2.30 -0.86%	$270.27	19,616,075 70.40% of 50 DAV 50 DAV is 27,864,000	$279.01 -4.41%	6/17/2010	$270.95	PP = $272.56
								MB = $286.19
Most Recent Note - 6/25/2010 4:56:57 PM Y - Hovering -4.4% off its all-time high. It was featured in the 6/17/10 mid-day report (read here) with a new pivot point cited based upon its all-time high plus ten cents while "working on the right side of a choppy 9-week consolidation marked by heavy distribution." >>> The latest Featured Stock Update with an annotated graph appeared on 6/17/2010. 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
APEI - NASDAQ American Public Educ Inc DIVERSIFIED SERVICES - Education and Training Services	$45.42	-0.15 -0.33%	$46.05	184,964 106.18% of 50 DAV 50 DAV is 174,200	$48.95 -7.21%	6/7/2010	$46.60	PP = $46.29
								MB = $48.60
Most Recent Note - 6/25/2010 4:58:58 PM Y - Quietly holding its ground above its 50 DMA line. It slumped below its pivot point after gains to new highs on better volume. >>> The latest Featured Stock Update with an annotated graph appeared on 6/14/2010. 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
BIDU - NASDAQ Baidu Inc Ads INTERNET - Internet Information Providers	$76.10	+2.30 3.12%	$76.28	8,856,358 57.89% of 50 DAV 50 DAV is 15,298,500	$82.29 -7.52%	1/13/2010	$43.13	PP = $42.68
								MB = $44.81
Most Recent Note - 6/25/2010 4:15:20 PM G - Quietly consolidating -7.5% below its 52-week high while building a choppy late-stage base. Its 50 DMA line defines important initial support above recent lows in the $66 area, where violations would trigger worrisome sell signals. >>> The latest Featured Stock Update with an annotated graph appeared on 6/21/2010. 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
BRLI - NASDAQ Bio Reference Labs Inc HEALTH SERVICES - Medical Laboratories and Researc	$22.74	-0.26 -1.13%	$23.19	288,705 153.48% of 50 DAV 50 DAV is 188,100	$24.67 -7.84%	6/15/2010	$23.57	PP = $24.77
								MB = $26.01
Most Recent Note - 6/25/2010 4:22:44 PM Y - Enduring mild distributional pressure and closing the week below its 50 DMA line. Gains above its recent high ($23.87 on 6/18/10) would be an encouraging sign. >>> The latest Featured Stock Update with an annotated graph appeared on 6/15/2010. 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
CISG - NASDAQ Cninsure Inc Ads INSURANCE - Insurance Brokers	$27.80	+0.33 1.20%	$27.80	420,343 135.07% of 50 DAV 50 DAV is 311,200	$28.62 -2.87%	6/16/2010	$27.20	PP = $27.75
								MB = $29.14
Most Recent Note - 6/25/2010 4:23:36 PM Y - Hovering -3% off its all-time high in a very tight trading range near its pivot point since featured in the 6/16/10 mid-day report (read here). >>> The latest Featured Stock Update with an annotated graph appeared on 6/18/2010. 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
CRM - NYSE Salesforce.Com Inc INTERNET - Internet Software and Services	$91.62	+0.58 0.64%	$91.98	2,074,241 76.61% of 50 DAV 50 DAV is 2,707,500	$97.94 -6.45%	6/2/2010	$88.44	PP = $89.60
								MB = $94.08
Most Recent Note - 6/25/2010 4:25:13 PM G - Quietly consolidating just above its old pivot point. Prior highs in the $89 area define support just above its 50 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 6/22/2010. 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
DECK - NASDAQ Deckers Outdoor Corp CONSUMER NON-DURABLES - Textile - Apparel Footwear	$155.05	+1.87 1.22%	$156.40	540,543 102.82% of 50 DAV 50 DAV is 525,700	$168.52 -7.99%	6/11/2010	$157.34	PP = $158.57
								MB = $166.50
Most Recent Note - 6/25/2010 4:30:12 PM Y - Gain today with near average volume, but it ended down -6% for the week. Its 50 DMA line is an important support level to watch now. >>> The latest Featured Stock Update with an annotated graph appeared on 6/11/2010. 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
FFIV - NASDAQ F 5 Networks Inc INTERNET - Internet Software and Services	$71.89	-0.09 -0.13%	$72.30	1,412,086 83.49% of 50 DAV 50 DAV is 1,691,300	$77.10 -6.76%	6/16/2010	$74.50	PP = $74.10
								MB = $77.81
Most Recent Note - 6/25/2010 4:33:16 PM Y - Ended near the session high today after slumping near its 50 DMA line early in the session. >>> The latest Featured Stock Update with an annotated graph appeared on 6/16/2010. 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
MELI - NASDAQ Mercadolibre Inc INTERNET - Internet Software and; Services	$58.15	+1.30 2.29%	$59.00	4,723,708 607.71% of 50 DAV 50 DAV is 777,300	$62.14 -6.42%	5/13/2010	$54.21	PP = $55.85
								MB = $58.64
Most Recent Note - 6/25/2010 3:34:13 PM G - Considerable gain today with above average volume, rallying after a pullback tested support near prior chart highs in the $55 area. >>> The latest Featured Stock Update with an annotated graph appeared on 6/10/2010. 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
NEM - NYSE Newmont Mining Corp METALS and MINING - Gold	$61.67	+2.72 4.61%	$62.11	12,166,725 130.39% of 50 DAV 50 DAV is 9,331,300	$61.78 -0.18%	6/22/2010	$59.60	PP = $59.67
								MB = $62.65
Most Recent Note - 6/25/2010 3:30:31 PM Y - Considerable gain today for a new 52-week high with volume near average. Near all-time highs with no overhead supply to act as resistance. It was featured in a 6/22/10 Stock Bulletin with annotated graph (read here). >>> The latest Featured Stock Update with an annotated graph appeared on 6/22/2010. 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
ROVI - NASDAQ Rovi Corp COMPUTER SOFTWARE andamp; SERVICES - Security Software andamp; Services	$38.14	+0.94 2.53%	$38.21	1,710,606 127.01% of 50 DAV 50 DAV is 1,346,800	$40.06 -4.79%	6/3/2010	$38.70	PP = $40.16
								MB = $42.17
Most Recent Note - 6/25/2010 4:11:05 PM G - Closed the week above its 50 DMA line with quiet volume behind its gains. Prior lows near $35 area define support above its 200 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 6/9/2010. 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	$6.78	-0.15 -2.16%	$7.05	1,146,237 1,411.62% of 50 DAV 50 DAV is 81,200	$8.42 -19.48%	5/4/2010	$6.85	PP = $7.09
								MB = $7.44
Most Recent Note - 6/25/2010 4:36:49 PM G - Small loss on very heavy volume today. Since negating its breakout volume behind gains has been light. Gains above its 50 DMA line and above recent chart highs near $7.40 would be an encouraging technical improvement while recent chart lows in the $6.25 area define important support to watch. >>> The latest Featured Stock Update with an annotated graph appeared on 6/24/2010. 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
THOR - NASDAQ Thoratec Corp HEALTH SERVICES - Medical Instruments and Supplies	$43.87	+0.21 0.48%	$45.02	7,249,785 731.05% of 50 DAV 50 DAV is 991,700	$47.93 -8.47%	6/3/2010	$44.38	PP = $45.35
								MB = $47.62
Most Recent Note - 6/25/2010 4:38:25 PM Y- Small gain today with heavy volume. During the week its slump below its pivot point raised concerns. >>> The latest Featured Stock Update with an annotated graph appeared on 6/23/2010. 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	$24.92	+0.50 2.05%	$24.92	895,870 143.13% of 50 DAV 50 DAV is 625,900	$26.75 -6.84%	5/28/2010	$25.58	PP = $25.86
								MB = $27.15
Most Recent Note - 6/25/2010 4:41:11 PM Y - Closed near the session high today, making a positive reversal after dipping near its 50 DMA line. >>> The latest Featured Stock Update with an annotated graph appeared on 6/25/2010. 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