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Technical Market Action Since reaching l'.I! intra-day 10Vi of 194.33 e(l.rly last \7eek, the market h('5 rnllied to a hi.Gh of 199.11 on Monday. Directly overheac is the heavy resistance area. of 199 to 203. It will he interesting to note hot the markE,!; acts as this area is entered. Norr.1Il1 expectation pould be D. backing anay from the CiverheD.d resistllllce area and a testing of the lows of lo.st week. Last week's lows were just off the first support area of 194-191t. Consider the near term picture too uncert,'lin to rGcommend trc.ding purchases at this time. Regardless of whether the lows of last \'leek e.re to be the 1017S of the intermediute decline or whether onG of t11G t,iO 10weF support levels mentioned in last week's letter ni11 be rec.ched, still feel that eventually hi6her prices are indicated for the longer term. Believe that any further decline in the nvero.r;es will be selective and that SOIne individual issues and croups r.\ay alrec.dy have reached their lows. One group that seems. to already bo very near to its indicated down- side objective is the airline group. In most lnstQnces, the i.ssues in this co.tegory made their hiShs in late 1945 and have bew ir, c. declininr, pht.se since thct The four issues listed be10Y! 'prem' interesting for lon;; term hol'.1- inc. Advise purchl8e in periorls of mo.rket 80f';11oss. 1945-46 1946 High LoOl Mor,dr.y's Do'.vnside Close Objective Americun Airlines T.W.A. United Air Lines fur Lines 19 7/8 79 62 1/2 4D 1/2 14 5/8 44 3/4 35 1/8 20 1/8' 14 7/8 45 3/8 38 1/2 20 1/4 14 42 36 It rlill be noted that most of these-issues show substo.ntial declines from their hi;hs and at r()cwt 10IVs have just about ret'.ched their dOl'mside objectives. No objective is given for Western Jiir Li.nes as the objective is not clear. July 29, 1946 EDMUND W. TABELL SHIELDS & Cm.iPANY Dow-Jonos Industrials DOI1-Jones Rails Dow-Jone s 65-S;tock 198.23 61.40 73./4 The opinions expressed in this I.tter IIr. the perlonal interpretation of cherts by Mr. Edmund W. Tebell and ore not presented as the opinions of Shi.ld, &. Cornp4ny.