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Down, But Not Broken

|Includes: AFFY, IYT, MFB, VanEck Vectors Semiconductor ETF (SMH), ULTA, XLF, XRT

Broad-based selling for the first day of June goes well with our Sell Bias.

But if you read our weekly report, you know we're looking for a bounce.

We'll stop looking for an immediate bounce when/if last week's low on the major indexes is taken out.

Bounce or not, the one thing that's been clear to us is that it's not a favorable time to be buying breakout Growth Stocks.

This week we have our eye on Ulta Salon (NASDAQ:ULTA) as a breakout candidate. They report earnings this week, which could give it a bump in either direction.

We can't expect much given the collapses of other recent top-rated stocks Maidenform Brands (NYSE:MFB) and Affymax (AFFY.)

In sector action, we're looking for rebounds from traditional trend leaders like the semiconductors (NYSEARCA:SMH), retail (NYSEARCA:XRT), financials (NYSEARCA:XLF) and transportation (BATS:IYT), which are showing not all is broken in the bull's path as they trade above their 40-week major averages.

Disclosure: Short: CRK, SLW