The major averages ended unanimously lower on Wednesday while volume totals on the NYSE and Nasdaq exchange were reported higher than the prior session totals, indicating distributional selling pressure from large institutional investors.  Decliners led advancers by nearly a 2-to-1 ratio on the Nasdaq exchange while on the NYSE the bias was less negative with about an 8-to-7 ratio. There were 27 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, down from the 38 issues that appeared on the prior session. On both exchanges new 52-week highs still significantly outnumbered 52-week lows, and new lows were in the single digits again.

Stocks started the session flat.  Before the opening bell, the latest ADP Employment Report showed 371,000 jobs were slashed in July, greater than the 350,000 job losses forecast, and data for June was revised lower to 463,000 job cuts. Selling pressure intensified ahead of the latest ISM Service Index which unexpectedly slipped for July to 46.4, down from 47.0 in June, missing expectations for a 48.0 reading.  Meanwhile, the third straight monthly increase in factory orders, +0.4% higher in June, failed to inspire buyers.  The non-farm payrolls report, due on Friday, is expected to show 328,000 job losses.

Better-than-expected earnings results reported by Marsh & McLennan (MMC +5.40%) helped give insurers a boost. Short-covering was said to have given AIG (AIG +62.72%) jolt.  Continued strength among financial issues including Bank of America (BAC +6.52%) and JPMorgan Chase (JPM +3.90%) helped the market's outlook improve.  See the Industry Group Watch section in this report (read here) for a look at the Bank Index's significant progress of late which bodes well for the broader market outlook.  The market's more favorable conditions of late (concerning the M criteria) are detailed more extensively in the new August 2009 issue of our monthly newsletter, CANSLIM.net News (read here).

The US dollar traded at $1.4447 per Euro, the weakest level since December 18th.  Prices were initially pressured by a larger-than-expected weekly inventory build of 1.67 million barrels, then a rebound in commodity prices lifted oil +0.8% to nearly $72 per barrel.

PICTURED: The S&P 500 Index stayed above the 1,000 level, however decliners outnumbered advancing issues by 2-to-1 among the companies in the S&P 500 Index as well as the Dow Jones Industrial Average.

Charts courtesy www.stockcharts.com

PICTURED: The Bank Index ($BKX +3.54%) was a standout gainer on Wednesday's mostly negative session, rallying for an 11th consecutive and considerable gain and a new 2009 high.  Many times in the past it has been pointed out in this Industry Group Watch section that the financial group is a reliable leading indicator.   This is considered very encouraging action from the financial group that bodes well for investors. The Broker/Dealer Index ($XBD +0.34% - not shown) also finished the session with a small gain, bucking the broader market's negative bias.

Neutral Tandem Inc (TNDM -$0.73 or -2.22% to $32.18) is consolidating on lighter volume toward prior chart highs. It gapped up on 8/03/09 for a considerable gain on more than +50% above average volume and a new all-time high, triggering a technical buy signal. It is due to report earnings before Thursday's opening bell. A recent newspaper article suggested its June 29th high ($31.49) was "an adequate buy point." It rallied above that prior peak from a 5-week flat base, but more significantly, it also cleared its resistance level at its June 2nd high of $32.57. Its color code was changed to yellow with new pivot point cited based upon its 52-week high plus ten cents.

Subsequent deterioration into its prior base would raise concerns and negate its latest breakout.  After prior chart highs in the $31-32 area, its 50-day moving average line and then its multi-month upward trendline are the next important support levels where violations would trigger additional sell signals.  Disciplined investors always limit losses by selling any stock if it falls more than -7% from their buy price.  TNDM has traded up as much as +82.95% since first featured at $18.89 in the 3/02/09 Mid-Day BreakOuts Report (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.