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Technical Market Action Monday's market closed lower with all the averages showing minus signs at the close. The industrials were down 81 cents at 211.47, while the rails closed 95 cents lower at 66.92. The 65-Combined Stock average was doom 50 cents at 78.84. Volume was 1,210,000 Best acting issues included utilities and oils and some the mail order issues. , From May 20th to last Friday the industrials and rails advanced on seven trading to the extent of 7.06 on industrials and 4.09 on the rails against two days of decline totalling 58 cents and 24 cents. After such a sharp rise, the normal expectation would be at least a period of consolidation,if not a minor decline. As yet, the rail average has not confirmed the rise in the industrials with Inst Wednesday's high of 68.42 exactly equalling the February high of 68.42. However, consider the fact that the three combined averages decisively penetrated previous highs of greater importance. Based on the pattern of individual rail issues, expect a confirmation by the rail average shortly. Some of the utility holding company issues show excellent technical action. American Water Works at 28 indicates a resumption of the uptrend and a move to the 33-3 area over the, intermediate term. The close was 27 1/2. Continue to like the technical action of selected rails and heavy industry issues. Like steels, railroad equipment, machine companies, farm equipment and metals, and advise purchase on minor sell-offs. From a technical viewpoint, the formations suggest much greater profit possibilities in this group than in the consumer type issues such US stores, liquors and amusement issues. These issues had sharp price advances and in most cases, have about reached their longer term technical objectives. At best, a long consolidation period is indicated before a possible resumption of the advance. Switching from this into heavy industry shares seems indicated. June J, 1946 EDMUND W. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrials DOVi-Jones Rails Dow-Jones 65-Stock 211.47 66.92 78. 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.