The major averages ended the day and week mixed after finding support earlier in the week. Breadth was positive on Friday as advancers decisively led decliners by nearly a 2-to-1 ratio on both major exchanges. Volume was sharply higher across the board as many indexes did their semi-annual rebalancing. There were 18 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 12 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.

On Monday, the major averages got smacked as the dollar rallied after the World Bank said the recession will be deeper than previously forecast. The stock market and a slew of commodities sold off after the World Bank cast a dark cloud over the current global economic recovery. The World Bank believes that unemployment and poverty will rise in developing nations and predicted the global economy will fall by -2.9% for the rest of the year. That is lower than the World Bank's prior report of a -1.7% contraction. The Bank believes that economic growth will return in 2010 at a +2% rate. That is also lower than last quarter's estimate of a +2.3% rate. A separate report showed that corporate insiders (i.e. executives at publicly traded US companies) are selling shares at the fastest level since the bear market began in October 2007. 

On Tuesday, the major averages ended mixed after President Obama defended the powers of the Federal Reserve. Obama explained his plan to allow the central bank to be in charge of monitoring broad risks facing the financial system. He highlighted several important roles of the Fed and also defended the performance of Fed Chairman Ben Bernanke during and after the financial crisis, saying Bernanke has done a "fine job" and "performed well."

On Wednesday, the market ended mixed after the Federal Reserve concluded its two day meeting and held rates steady. The Fed did not increase the size of its $1.75 trillion bond-purchase program, sending the Dow Jones Industrial Average into negative territory by the close. The Fed indicated in its after-meeting commentary that the rate of economic contraction is slowing and inflation will remain "subdued for some time." This helped allay concerns that the rate of economic slowdown will increase and that inflation will spread. The central bank has kept its benchmark interest rate between zero and 0.25% since the fourth quarter of 2008. The Fed said its overnight lending rate will stay at "exceptionally low levels" for "an extended period."

Charts courtesy www.stockcharts.com

PICTURED 1: The Oil Services ($OSX -0.07%) Index's 50-day moving average (DMA) line recently rose above its 200 DMA line, which indicates near-term strength. However, it has lost ground in 9 of the past 11 sesions and it also slumped under its 50 DMA line this week.

PICTURED 2: The Integrated Oil ($XOI -0.65%) has recently slumped and it is now trading below its 50 & 200 DMA lines which have converged.

Synaptics Inc. (SYNA +$0.37 or +0.98% to $38.10) is quietly consolidating above its August 2008 chart highs ($36), its 50-day moving average DMA line, and recent chart highs which all closely coincide -defining an important support level. At its recent highs it was challenging its 2007 high near $41 and, technically, any subsequent breakout to new all-time highs would be undeniably bullish.  It was first featured in yellow in the May 18, 2009 mid-day report (read here). The number of top-rated funds owning its shares rose from 123 in June '08 to 196 in March '09, which is good news concerning the I criteria. Strong earnings and sales revenues growth in the 4 latest quarterly comparisons satisfies the C criteria. Its annual earnings (the A criteria) history showed a downturn in 2006, leaving concerns, but it followed that up with strong growth the next 2 years.

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.