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Technical Market Action On increased volume, the market moved ahead-on Monday to reach new bull market high territory on both the Dow-Jones industrial average and the 65-Stock composite average. While the figures on the New York Times and New York Herald-Tribune average are not available at present writing, it is believed that these two averages reached new high territory. While the Dow-Jones rail average, 'at the day's high of 67.18, did not penetrate the February high of 68.42, the fact that has decisively penetrated the April high of 65.63 , plus the technical patterns of individual rail issues, indicates the probability that the February high will be penetrated in the near future. While e strict interpretation of the Dow Theory requires a confirmation by the roil average, the writer is of the opinion, as stated in recent letters, that a decisive penetration of the February highs by the three combined stock averages (Doll-Jones 65-Stock, New York Times and New York Herald-Tribune) would be sufficient to indicate a confirmation of the uptrend. This has, I believe, occurred and would now the 'market in trading accounts. This does not mean that the market will immediately move ahead in a straight line. There will undoubtedly be periods of uncertainty but the important signal given by Monday's penetration is that the possibility of a sizeable decline appears to be decidedly more remote. Would add a few more issues to the recommended list at this time, keeping a portion of funds available for purchase during technical corrections. Believe that the advance will continue to be selective and favor rails, railroad equipment, steels and metals. Suggest the following American Metal Bridgeport Brass General Railway Signal Hercules Motor Inspiration Copper Jones &Laughlin Lima Locomotive Miami Copper National Malleable Steel 1946 High 41 7/8 20 3/8 47 1/2 38 7/8 22 1/2 53 7/8 88 18 3/4 41 5/8 1946 Low 33 1/2 161/8 38 1/4 31 1/4 17 1/8 40 68 1/2 12 3/8 30 1/2 Monday's Close 41 3/4 18 1/2 44 34 1/2 21 3/8 48 7/8 75 171/2 34 7/8 May 27, 1946 EDMUND W. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrials Dow-Jones Rails Dow-Jones 209.42 66.65 78.25 The opinions expressed in this letter are the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.