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Technical Market Action The intermediate term trend is now indiceted as up. On incrp.sed volume, the averages on Friday penetrded the September 17th highs of 179.37 and 49.02 to reach intra-day highs of 180.31 and 49.19. Volume totalled 1,270,000 shares agrinst the previous high totc.l of 1,260,000 Slares on September 17th which was also a day of advancing prices. From a technical point of view, the stage is all set for an extremely sharp advance. The ability to hold at the 175-174 level after ten downside attempts indicates a thoroughly sold out condition. Volume indications are favorable and would expect a nedrby attempt to penetrate the July highs of 187.66 and 51.92, which would signal ' new bull market move. Actually, only a penetration of the rail high is needed to give such a signal as the industrinl average penetrated the previous FebruarJ high in July and indicated an uptrend at that time which was not confirmed by the rails. Believe the July highs will be penetrated an that Friday's action indicdes the stc.rt of a new advancing phase that could carry forward for tW!J or three months Viith only minor technical corrections. Several of the issues in our recommended list reached new high territory on Friday. Included in this group were Borg Warner. Union Bag & Paper. Flintkote, International Paper, Joy Manufacturing, Oliver Farm, Sharon Steel, Wheeling Steel and Youngstmm Sheet & Tube. All of these issues inrlice.te hi.;her levels and continued retention is advised. Other recommended issues with attractive technical patterns include American Cyanamid, E. W. Bliss, Cities Service, Colorado Fuel, Deere & Company, Doehler JarviS, Elliott ComoB..'1Y, General BE.ihey Signal, Illternational Minerals, Jones &Laughlin, Mullins Mar.ufacturin&, National Supply, PepSi-Cola, Phelp-Dodge, Rayonier, Shamrock Oil, Standard Gs 4 pfd., Union Carbide and Worthington.rump. The rails could, percentagewise, have a sharp upward move from here. Our recommended issues are Chicago Northwest, Illinois Centrnl, Seaboard Air Line and Union Pacific. For a cross section of the market, SUgbest purchase of our three recommended investment trust issues. They are Adams ress, Atlas Corporation' and U. S. & Foreign Securities. '\. October 3, 1947 EDMUND VI. TABELL Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock SHIELDS & COMPANY 179.53 49.11 64.35 Th. opinion. expressed in this letter are the penonal interpretation of charts by Mr. Edmund W. Tabe!! and are not prosented as the opinions of Shields & Comptlny.