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Technical Market Action After roaching a 10Vi of 179.12 in the early hours of Thursday's session, the market rallied in the afternooFl trading to reach a high of lSl.40. A sell-off in the last few minutes of trading brought the industrial average back to a closing price of 180174, off 4 cents on the day. The rails, after reaching a new low for the move of 50.62, rallied back to 51.44 anu closed at 51.50, up 29 cents on the daYI Volume was at approximately the million share mark \11 th more than one-third of the trading taking place'in the final hour rally. The r.larket has now reacted to the 181-179 area mentioned as a buying zone in recent letters. Believe it has had a sufficient technical correction of the 15 point advance from the Janue.ry lows Il.'ld that the next importlt move vlill be on the upside. Still believe the technical action of the market continues to indicate an intermediate term advance to the 190-200 level of the industrial average with the possibility that the 195-205 level will be a closer approximation of the final objective. The comparable objective of the rail average is 60-62, Most of the issues recommended for purchnse on price weekne;; over the past four months have ro.11ie sharply from th8ir buying levels. However, C considerable number still indicate prj.ce arhunce,g of approxiJ!lD.tely 50 or more hcfore their intermediate term obj ectives are reached. Listed below arE; ten i.ssues tll.l.t have objectives consiuerably above pres0ut leyels. In some cases they have already broken out of their trading ra!1ees to indicte she,rply high;r patterns. jn other cases they have yet to penetrate the unside resistance. Thif, informat,ion, together with intermediate term objectives, is noteu belo;1. Alleghany, pfcl. – Closed at 40 1/4. This stck i13 a olati1e, speculative issue. lt reuched a high of 69 1/4 in 1946 and its distributi.on area inLicated a decline to 29-26 zone as noted in our pecial letter of October 14th. It subsequently reached a low of 29 5/4, Its b0.8e pattern, forrued since then, indicated 11 rally to the 65-67 I'rea i f 41 was reached. This point \'Ias reached in the last rally and the upswing carried to 44. The present reaction has brought the stock back to a buying range. American & Foreign Pcwer1-P.rd.- Closed at 25. Another extremely speculative issue. 19,1G higr was ;;. lifl uwl its dovmsice objective was 18-15. Reached a lovi of 18, Has form0d D. wid'l b',se pattern ith a penE;tration point at 26. If this point were relChedj a rtil j to 58-42 HOulu. be inuicated. CNns & Co. Closed nt 9. A less specu13tive issue but has a wide base pattern. 1948 high was 49 5/S. Buying zone Vias lietel us 55-50 in our letter of September 12th and tho stock reached a low of 51. Hus broken out on the upside at 39 and indicates an ultimate 68-72. Electric POller & Light. Closed at 19 l/S, 1946 high was 29 1/2. Support level on the lovmsiue was t'le 14-12 area and the stock reo.ched a low of 15 3/8. Base pattern ViaS recently penetrated on the upside at 19 and 0. rally to the 28-50 area is indicated. Illinois Central. Closed at 28 7/8. 1946 high was 45 1/2. Stock was recommended for purchase in our letter of September 11th in the 22-20 buying zone. Its low was 18 1/8. Stock hus penetrated upside and still indcates higher levels with 46-55 as the ultimate intermediate objective. International Minerals & Chemical. Closed at 29 1/4. 1946 high was 45. Downside objective was 26-24. Actual 10V was 26 5/4. Stock has been sluggish but has built up a large base pattern. A sale at 54 would indicate 47-49. Other four issues are lIlead Corp. (22 5/4) I Seaboard Airline (25 1/4), Union Bag (32 7/8) and llheeling Steel (45). Detp.ils l1i11 be given in tomorrow's letter. February 20, 1947 EDMUND \'. TABSLL SHIELDS & COMPANY Closing Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 180.74 51.50 65.56 The opiniona eIprened in his letter are the pers,one& interpretation of dlerts by Mr. Edmund W. labell end ere not presented al the opinions of Shield. & ComPlifty.