The major averages opened lower on concern that the Fed will withdraw its stimulus measures sooner than expected as the economic recovery continues. Volume, an important indicator of institutional sponsorship, was reported lighter than Tuesday's totals which indicated large institutions were not aggressively buying or selling stocks. Decliners narrowly led advancers on the NYSE while the mix on the Nasdaq exchange was slightly favoring advancers. 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, lower than the total of 27 issues that appeared on the prior session. New 52-week highs solidly outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.

At 9:45AM EST the Institute of Supply Management (ISM) released its Chicago purchasers index (PMI). The index surveys purchasers from both the manufacturing and non manufacturing (i.e. service) sectors of the economy. In the simplest form, the report compiles a survey to analyze business conditions in the Chicago area. The index came in at 60 which easily topped the Street's forecast. The Chicago PMI has now posted three consecutive monthly gains all at accelerating rates (60.0 Dec, 56.1 Nov, 54.2 Oct). It was also the highest reading since January 2006! The stronger than expected report suggests the economy is improving and bodes well for the recovery. Paradoxically, evidence of a stronger economy led many to worry about the Fed withdrawing its stimulus measures and possibly erring on the side of raising rates in early 2010.

Sign Up Now! A full overview of the market, the entire financial crisis, and leading/lagging stocks and sectors will be discussed in CANSLIM.net's Q4 Webcast tonight!

PICTURED: The Dow Jones Indistrial Average closed higher on lighter volume than the prior session.

Charts courtesy www.stockcharts.com

PICTURED: The Bank Index ($BKX -0.26%) continues to struggle below its 50-day moving average line.  That short-term average acted as resistance in early December. Subsequent deterioration below its prior chart lows would be an ominous sign, especially because the financial group is a reliable leading indicator for the broader market.  This point is also being illustrated in CANSLIM.net's Q4 Webcast which airs at 8PM EST on December 30, 2009 and will be available to be viewed on-demand.

Ctrip.com International (CTRP -$0.57 or -0.77% to $73.02) posted a small loss today on lighter than average volume. Last week's slump under its pivot point raised concerns while falling on higher volume toward its 50-day moving average (DMA) line - its next important chart support level.  Near its pivot point now, it encountered some distributional pressure when recently rallying above its "max buy" price of $77.60.  Featured on 12/01/09 in yellow in the mid-day report (read here). It triggered a technical buy signal as it rose with more than +50% above average volume from a brief consolidation resembling a "high-tight-flag" pattern which it formed after repairing a late-October breach of its 50 DMA line and sprinting considerably higher. Fundamentally, its sales revenues and earnings increases have shown acceleration in the 3 most recent quarterly comparisons and rose solidly above the +25% guideline in the latest period ended September 30, 2009.

A follow-up study on 12/29/08 included an annotated graph under the headline "Disciplined Investors Avoided This Trip To The House Of Pain."  That was well after if was dropped from the Featured Stocks list on 6/10/09 based on weak technical action when it closed at $49.84. Technically, it has rebounded very impressively from subsequent lows in the $16 area. It has maintained a strong and steady annual; earnings (A criteria) history.  Fundamentals have shown greater sales revenues and earnings increases in the most current quarterly comparisons (C criteria), which is a very encouraging sign.  The number of top-rated funds owning its shares increased from 52 in Mar '09 to 114 in Dec '09, which helps satisfy the I criteria.

A FRESH ANNOTATED DAILYGRAPH WILL BE ADDED FOR THIS STOCK SOON.  CHART SERVICE IS CURRENTLY IN USE FOR TONIGHT'S Q4 WEBCAST "HOW TO NAVIGATE DURING VOLATILE TIMES"  DO NOT MISS YOUR OPPORTUNITY TO ATTEND OR VIEW THE PRESENTATION ON-DEMAND AT A CONVENIENT TIME.

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.