Tabell’s Market Letter – August 15, 1946

Technical Market Action Thursdays market. VIGS reactionary with the jndustria1 average eell- ing 1. 50 10Vier and the rai.1s down 77. Vo1u.me, hOle-,-er, was at 'lll exceed Lngly low pace Vii t.h transactions t.ot9.11ing only 620,000 sIlo.res. Since the ('igh succesfli ve up dayG of the eight point rf.lly from the July low, the mal'ket has spent. the last E'lc'lcn days in a trading shelf bounded roughly by 205 em; 200. H i.s possible that t.his consolidating period 10 t'lking the place of a eecondl'Y correction of t.he adv-ance fro, t.i1e July lows. The sm'lll volume d.,ring this tends to support thi s viP-IV. from technical vJ.evTloint, the longer t.he market holdo in this rongp., the tec()mes the that the July lew was the low of the int.ermedil).te duc'irle. Tile l1at tern now b('inG formed begills to take on the appecrance 0'; a head Dnd ilhoulders b,)t.tom, wit! the June low of around ;,00 b8ing the right sh,ouldor, the JU;.y low of 1';'5 te1ng the head llJ1d t.'e present period bei.l1g left shoulder. Tcchni caily, such a format.ion usufllly sugge,;r.s the end of 11 down tl'c,n,l and the start of a slr.e– able advance. Dropping the techlii.cal 1anlllClge, fed tho t tn.ding purchases can be made durin6 the current irregu.l9.ri. ty. Dr;-U.pve the mnrket j IJ breElk out of 1,110 present t.Iadi.ng ranee on the upS.Ldl md at test the old hi.;fJs. Favor the heavy indust.ry i.ssucs ana rails. August 19/,6 ED),IUND Ii. TASF..LL SHIFl.DS & Closing t.ri aL' DOil-Jones Ra us DJ 65 Stock Comp. 202.49 62.35 7'1. 87 o The opinions e.pressed in this letter ere the personal interpretation of charts by Mr. Edmund W. Tabel! end ore not presented as the opinions of Shields & Company. ,/ – –