Technical Market Action After a continuation of Friday's rally to an early morning high of 172.15 on th industrials and 48.09 on the rails, the market turned dull and irregular until the final two hours of trading when a new deluge of selling brought the averages down to intra-day 10Vis of 166.09 and 45.45. The closings were 166.56 on the Industrials, down 2.50, and 45.69 on the rails, off Both averages held above last week's lows of 164.09 and 45.37. Volume was 2,110,000 shares, with trading heaviest in the final hours. As to the action of the market, see no change from the last para- graph of our last letter dated September 19th , -, / ItWould hesitate to mention a possible buying point in the averages other than '1. t would be between here and approxi- mately 157. Would rather Ii-atch action of individual issues as it usually happens that all stocks do not make their lows at I 'the same time. It J \That we are witnessingI, in my opinion, is II building up of a base formation. In the process, some issues may sell somewhat lowr and the averages also may go into new low ground, possibly as low as the 160-157 range in the Dow-Jones industrials and around 107 (now approximately 112) on the New York Time; averages. However, a great many other issues have held at or above the lows of the last two weeks and may have already reached their objectives/, Advise purchases on weakness into the 'buying ranges mentioned in previous letters. Only a comparatively few such issues have reacted substantially below the Oller point of their buying areas. Addi tional buying ranges wi.ll be men ti oned shortly. . After the lows are reached, and in my opinion that point will be between present prices and 157, expect after a possible period of irregularity, a technical rally that should retrace one-third to two-thirds of the decline from the highs of 213 on the Dow-Jones industrials and 148 on the New York Times average. September 23, 1946 EDMUND W. TABELL SHIELDS & OJMPANY Closing Dow-Jones Industrials Dow-Jones Rails Dow-Jonae 65-Stock 166.56 45Jf) 59.73 Th. opinions expressed in this lett.r 4r. the personal interpretatiOll of chart by Mr. Edmund W. Tabell and are net presented as the opinions of Shields & Company.

Technical Market Action The market continued the ro.1ly at a ;llghtJy reduced pace on Thllrsduy. Tho clos vms near the; highs of we day. The industrials closed at l74.,)6,llp 2.01 on the day', while the ruils closed 6f, hiGher at 48.68. From the September 19t.h 10,1 of 164.09 to Thursday's high of 175.45, t.he mnrkct '11'-8 rDlJi,)d eleven poL'lts. Percento.ecl1ise, tlrLs il3 th best ,'ally 'he industrial ,,Grage has h.G since April of year. T8chnicnll;, the murkct c.ppcf..rs to lUl.ve reactwd its low at l-.st Thurs- day's 1011 of 164.09. 'As pointed Llut in this j.etlE'l', tl1e selling since tile high volume dac' of 3,620,000 shares on SeptemlJer 4th V;c.s seemingly much ,maker than the buyinG. This Via; evidenced by tho fact thd i'roJll the ll'id-August top of approxima.tely 205, the markc t deClined, i n fourteen trc;.ciing to a low of 17/. on Septembpr 4th. This decltne molmtcd to 31 points or 15. In the next three weeks, regardlese 01' the heavy volume fl..'lC general pessimism, the market declined only ten polnts'from the 17/. 10'01 or D l03J then 6. actIon startin.g from 4th ,tae of t base pattern. A of all technical of individual ism8s show, thet of those with clc(!r cut about t.l ill''1'' their dOf'nside objectives, e.nother 14 arc Iithin a fe\, points of tne.l., ob,iective ;;hile t.he remaining 25 still shm sorne\;hat lower prl.cGs. Past expe-iellCL ha.'3 ShOhTI ..tions to be npproxLLUtely 70 correct. N')rml'l t.(-clmical ,.etlon ;'10111d cc.l foJ' retrac(,ment of' one-third to blo-thirds of the dccJinC'. Dcpcnding on I1hehcr the Mey top of 213 or the; August top of 205 ill uSbd, t!1i8 would call fcr , r1'11)' to somollh'3l' betllf'en 1'78 end 196. Obviously, it may G,k1 some time before T,'leRc objectives are re3.ched. Th, idec.l pattern \lOu1d be a rllly to thE. 178-180 crua follm-led by .C ti.on to the 174- 172 area – followed by a to l.rnild up D. futhcr base pattern. In any even t, the m1lricet nov; appears to be r. purchas,.. on X'cci,j.Ol).s. Of the nlneoy-nin8 buying ran,-;es lbtecl OVEr the past weeKS, cightysix reached the buying area. Of these ej ghty-p.l..c, only tw,.,'' recoted moru than 10 below the lOVier limit of th buying range. September 26, 1946 EDl1UND \!. TAEr..LL SHIELDS & CO;PANY Closing ….. DOVi-Jones In&lstrials DO'i'I-Jones Rails Dow-Jones 65-St.ock 174.96 48.68 62.83 The opinions e ..prolSed in this letter are the personal interpretation of chem by Mr. Edmund W. Taboll end are not presented as tho .opinions of Shields & Company.

Technical Market Action After declining to a lov; of 170.4'4 on Mondt,y, doom ).65 from I the previous close, the indllstrial ave-c.ge recoveted a go,)d portion of tIle day's losses in th final hours of trading Dnd closed t' 72.42, dO\ID on the'dJ.Y. The- mil D.verJ.ge reached 10\, of 47.14, dom e1.28 rom the pFEvious close rind closed Ct 47.72 off 70 cents. VolUla. was c'nal1 r, L 1,020,000 shllres. , Believe the r.larket action of both Monday TId I 'ms definitely encour,ging. At the day' 5 10,5 of 170.44 and 47.14, the. industric.ls hrd lost of I.he rully from the or rO;gh1y 44. The rails retmced 1.75 of the . 13 rrJ,ly, or arproxi,i,tcly 1/2. The correction 11'5 held v;ithin nOl'mal boun'ls md has been on exccoedj,ngly small ,'olullle. The three advcine; of last week avero.od sl1o.res hile tl,lC to days of de- eline averaged bela' the million sharr; j!1ark. tion Industrials 'Ihe action of the recvnt me.rlmt is shown in the follovling tabula- 1946 High 213.36 191.6 LOl' 164.09 Dcclille 9/26, High 175.45 Advance' 11.36 , 'd Ad- 9/0 De-' – – -vance LO;7s cline Decline 23 170.44 5.01 44 Rails 68.77 44.76 24.01 48.89 4.13 17 47,141.75 42 Believe the market will have a full second9.ry correction of at' least one-third to one-half of the declines of 1.9.27 !U1.d 24.01. The market, to be in the process of formi.ni5 !l basE'. BeliE've the bast' area ma,,, be built up in the 170-180 area. Would expect thc'next' move to, carry to the up;er part of the range. September )0, 1946 EDflWND if. TABELL SHIELDS & COMPANY Closing Do,,-Jones 'nm strinJ.s DOlhTonell Rails Dow-JonCiJ b;,-Stock 172.42 47.72 61.86 ,. The Clpinios e.pressed in this letter are the penonal interpretation of cherts by Mr. Edmund W. label! end Ire not pre,entad 8' the opinions of Shields & Comp.ny. ,