A relatively solid start turned into losses as the major averages ended unanimously lower again on Thursday. The volume total on the NYSE exchange was reported lower than the prior session, yet the Nasdaq exchange volume was reported slightly higher than the prior session total.  Decliners also led advancers by nearly a 2-to-1 ratio on the Nasdaq exchange, yet the bias was less negative at about a 3-to-2 ratio on the NYSE. There were 19 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 27 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.

The major indices opened higher following a smaller-than-expected weekly initial jobless claims tally of 550,000, but still at uncomfortable levels. Continuing claims were more-than-expected at 6.31 million, up from the previous week. The non-farm payrolls report for July is due before Friday's opening bell, which could be a catalyst that determines whether the major average hold on to post gains for their 4th consecutive week.

PICTURED: The Nasdaq Composite Index has pulled back under the 2,000 level, and it is consolidating above its prior chart highs and its 50-day moving average line.

Charts courtesy www.stockcharts.com

PICTURED: The Retail Index ($RLX +1.12%) was a standout gainer on an otherwise negative session. Macy's Inc (M +5.56%) and Gap Inc (GPS +8.17%) gapped up after each gave upbeat profit forecasts.  They have discounted less merchandise and cut costs, and margins improved.  Neither company would be on a watchlist for disciplined fans of this investment system, as each of their past 5 quarterly financial reports shows declining sales revenues versus the year ago period. A lack of sales revenues increases is a dead giveaway that a company is not growing.

Capella Education Co. (CPLA +$0.21 or +0.33% to $63.39) is consolidating above prior chart highs now which are likely to serve as a support level. Volume has been drying up during its healthy consolidation since its gap up gain on 7/28/09 with more than +50% above average volume helped it rise above its pivot point and trigger a technical buy signal. This is a strong performing leader in the Commercial Services-Schools Group. Its small supply of only 13.9 million shares in the float could contribute to greater price volatility in the event of institutional accumulation or distribution. The number of top-rated funds owning an interest rose from 91 in Sept '08, to 134 as of March '09, which is reassuring with respect to the I criteria. It has a very good earnings history that satisfies the C & A criteria.

Since first featured in yellow in the 7/09/09 Mid-Day BreakOuts Report (read here) its Relative Strength rank has slumped under the 80+ guideline, a sign that it has recently been lagging. The group has shown some leadership, yet currently has a D- for a Relative Strength Rating. (See the red circles.)

A follow through day of constructive gains with heavy volume would be a reassuring confirmation of heavy buying demand from the large institutional investors - demand which can fuel a sustained rally.  Meanwhile, subsequent deterioration back under its pivot point would negate its breakout, raise concerns, and trigger a technical sell signal.

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.