——– – – – – – – – – – – – – – – – – – – – – – – – – – c – – – – – – – – – – – – – – – – – – Technical Market Action While the broad ttern of the market suggests that the trading range of the past eighteen r.wnths is a slow patience-tryin!; accumulating phase, not all incividual issues have the sa'1C technical foroations. I have constantly drawn attention to the diverse patterns not only betIJe8n groups but also in stocks in the saJile group. Recently, I mentioned the relatively L10re favorable technical pattern of Westinghose Electric as coopared IIi th General Electric. I \-;ould also like to draw your attention to the difference in the technical patterns of Consolidated Edison and Colw,bia Gas & Electric. While both conpanies are in the general public utHHy classification, they are in quite different divLSione of the publiC utility field. Consolidated Edison is both an operating and holding cOJpany which, together Vii th subsidiaries, supplies gas, electricity and stean i New York City and hestchester County. Colul;Jbia Gas is a holding cor.lpany, heading a system COI..sisiing of nineteen operating cOlJpanies in Kentucky, Maryland, Nell York, Ohio, PemlsylvEJ1ia, Virginia and West Virginia. These opere.ting companies are engaged primarily in producing, purchasing, transporting and selling gas. Consolidated Edison has a very negative technical pattern. The downside indications of the broad distri.butional top betveen 36 and 32 indicated tl decline to 24 followed qy 17. The stock declined to 24 3/4 in October 1946 and eld tha level until a year lat8r ill October 1947 when it started e decline doWn' to' a 'low' , of 21. The stocle is still holding aroW1d that level. At the r,oDent, before any worthwhile upside l10ve is indicted, it ould seem that a base pattern vlOuld need to be built up in trading range around these or slightly lower levels. There is a heavy supply of stock in the 25-27 area that vlill act as strong resistance to anyupside move; Columbia Gas, on the other hand, has a potentially strong technical pattern. It made its low of 8 1/2 in the first break in October 1946. v.nen the averages broke to the sar,le lor. level 111 Mar, 1947, Columbia Gas held at 10. At the recent February lows, Colunbia Gs held at 10 1/4. The issue seems to be meeting increasing'support on every general narket dip. The base built up at the 9-10 area indicates a long term potential of 20. Consolidated Edison earned .1.90 a shc.re in 1947 and paid 1.60 in divi- dends to yield apPloxima tely 7.6 at th closing level of 21 1/8. Colurlbi Gas earned l.36 in 1947 and paid 60 cents in regular dividends plus 15 cents extra to yield6.8 at the clOSing price of 10 7/8. \10L) On the basis of the technical patterns of both issues, Colurlbia Gas appears ('LI'\)to offer better appreciation possi.bilities than Consolidated Edison. The market continues to hold in the narrow trnding range of the past month. However, volume indications in the past two days have been slir;htly more favorable. No worthwhile move indicated W1til 169.28 and 50.37 are both decisively penetrated on the upside or until 164.07 and 47.48 are both penetrated on the downside. Regardless of ninor neartcrm fluctuations, believe the rrarket is in the final stages of a long accumulation arca. March 11, 1941! EDMUND I.. TABELL SHIELDS & C01PANY Th. opiflion. expressed in thiS letter ar. the personal interpretahon of chari. by Mr. Edmund W. Tabell and are not prelented a, the opinion' of Shield, & Company. ,, \ 'I

Technical Market Action There is an excellent article in the IIhrch 20th issue of Collier's Magezine entitled hat ;e Are Afrad Of by Howard llhitle.n. Mr. ialitmlU IIri tes about the fear psychosis 'ihich seens to be ;ripping our nation today. I recoIlJlend this article as Dust reading. It is this fear psychcsis which enables us to buy good securities at prices of two to six tiL1E.s yearly earnings at a yield of 6 to 12. It is this fear psychosis that holds dovm the stock ,arket in the fac'e of record earnings, record enployoent and a trenendous pentu!J deJ.lnd — a deoand built up not only by five years of under-production cf p,.,acotiDe goods during the war, but also lack of buying pover during the t,n previous depression years. It is this fear psychosis that 11akes nost investors and speculators pay nore attention to the intangible factor of what might happen than to the tangible factor of what is happening. /rr,iS letter has continuously stressed the opl.nion that the trading range of the stock market for the past eighteen oonths is an area of c.ccumu- lation, with stocks passing froJ! weaker into stronger hands. Out of it 17ill cone an advance that should reach levels, in selected stocks, substantially above the highs of 1946. There is no telling when the advance will start. The present feur psychosis may continue for a While lonEer. ,hat will change this psycholoGY is problenaticaL Perhaps because we cannot continually sustain the sal1'e enotioll at a hiGh pitch for an indefinite til,le, it will just Viear itself out. Fron a technical viewpoint, the stage is set for a sharp rise in prices. All that is needed is the spark of a changed investor psychology. l,'hen that occurs it is boing to make sone of the apostles of gloom feel just a little bit foolish to realize they have passed up the opportuni ty to buy securities at a deflutcd price level that is not only failing to take into consideration the present level of busic.ess, but is discounting a possible tenporary dip that would bring the naladjustments of our present econonic pattern into line., There are SO10 slight technical signs in the action of the present market that indicate th noarby possibiE ty of an upward mo.ve of some iuportance. v,l1i.le voluoe renains 511a11, tn.ding has been concentrated in stocks which are noving higher. For exaJ,ple, of the fiftee.n nest active stocks last week, thirteen closed hir,her, onc was unchanged and one finished the week oneeighth of a point lower. This upswing in heuvily traded issues was in the face of u general narket that was practically unche.nged for the week. Incidentally, three of the stronger stocks ere part of ny list of recoended issues, nanely, Gulf.Mobile & Ohio, Electric Power & Light and Radio Corporation. Another favorable sign is the continued firess and strength in the rail group. At today's prices, the rail average is only four points below its high of the past eighteen Bonths while' the industrials are still tVienty points below their cO1parable highs. I expect the rails to be th leaders in the next upward sning. EDMUND Ie;. TABELL March 15, 1948 SHIELDS & COMPANY The opinions ellproned in this I.He, .re the personal interpretation of cherts h'l r. Edmund W. label! and ere not presented as the opinions of Sield. & Company.

Technical Market Action Both the industrial p.nd rail averages, at Tuesday's lows of 165.03 and 48.83, succeeded in hol(1inG above the February intra-clay lows of 164.07 and 47.48. On hednesday, the oarket turned stronger and both averages closed higher with the industrial overage up 85 cents on the day and the rails 56 cents higher. /A co;nparison of Tuesday's decline with th.t of February lOth and 11th brings SOlJe ra'vher interesting facts to light. On February lOth, the Inarket sold off sh;.rply. The industrial average declined ;)4.17 and the rails were down (/2.00. Volune totalled 1,460,000 shares. The aV8Tags reached intra-day lows of 165.2.6 and 48.04 and 181 issues rf'ached nel7 10\vs. The decline continued in the first hour of February 11th E.nd the eVerages n!lched intra-day lov!s of 164.07 and 47.48 ;.nd 204 issues reached nelV 1m,s. The narket rallied later in the dny End closed a few cents higher. Total volurle for February 11th was 1,490,000 shares. On the other hand, the decline of Tuesuay, i,larch 16th, shows a definite lessening of selling pressur8. The volurle was lESS than a rlillion shares at e. total of 940,000 shares for the day. The industrials declined ,2.23 and the rails t1.21. Th intra-cay 10ViS vrre 165.03 and 48.83. Only 161 issues reached nel lov;s. ,;edncsday's intra-da;)' lows Vlere 165.03 and 48.99 and on the advance, the volulJe of trading, at 930,000 shares, vms 8.1nost equal to that of the previous day' ,; decline. In cddition, 28 issues ;lade new hirhs for the year against 84 new 10Vis. r,hile the eVidence is far fron conclusive, it points to a graduc.l exhaustion of selling pressure. In fact, the sellino; pressure h'28 been gradually declininB since Fcbruar'J 11th. The irregularity of the past rlonth has been ccused by lack of buyinG inter8st rather thr.n selling pressure./ However, as I've nentioned before, it S8erJS nore advisable to follow the patterns of individual issues at this stage-of the narket rather than the m8aninbless neanderings of the averaes in this last phase of the accunulation pr.ttern. Individual issues continue to show excellent r.ction as witness Electric Power & Lil-ht, one of our recorulended iSSUeS th,t reached Go new high for the YCClr. Pure Oil, cJlother rccorl!1ended issue also showed independent strength as did Elliot Conpany on the New Yor\( Curb. Continue to like thb action of recorlmended rails. Also, in the 10Vier priped group, Colunbia Gas aDd Radio Corporation continue to 3ho.l improved technical action. March 17, 1948 ED1iUND II. Tf,BELL SHIELDS & COMPANY ClOSings Dow-Jones Industrials Dow-Jones Rails DOVi-Jonl'S 65-Stock 166.24 49.46 60.49 The opinions expressed In thiS leiter are the personal inlerpre'ahon of charts by Mr. Edmund W label! and are not presented as Ihe opinions of Shields & Company.

Technical Market Action Irn optnon,oy the odds nOr! favor the probability that the oft-mentioned 170-160 buying range in the Dow-Jones industrial average will not be entered again prior to a penetration of the 187.66 high of the industrials and the 54.17 hih of the rails. Saturday's action was very favorable fran a technical viewpoint. Saturday's lows were 170.76 and 50.82and Frido.Y's.highs WGr8 169.75 and 50.46. Thus there is an upside gap of 1.01 on the industrials and 36 cents on the rails. It is interesting to note that on February lOth, on volune of 1,460,000 shares the averages broke C4.17 and 2.00 and left a downside gap of 41 cents between 169.33 and 168.92 on the indus trials and a downside gap of 35 cents between 49.97 and 49.62 on tho rails. Thus, Saturdc.y's action lee-ves the entire trading range of the past six weeks in sort of a little island detached froo the rest of the pattern. This type of double gap is kno…m as an island reversal and quite often indicates an inportant change in trend. It also is interesting to note that Saturday's upside breakaway gap occurred on voluoe of 1,260,000 she.res 01 at the rate of over 3,000,000 shares for a full day Monday's oarket absorbed quite a bit of profit-taking but rlanaged to close 54 cents hieher on the industrials at 173.66 and only 2 cents lower on the rails at 51.76. Voluoe las 2,040,000 shares. The oarket appears headed for higher levels. Obviously, the advance will not be in a straight line. Ther are resistance areas at 175-176 and at 179-181 and again at 185-187. However, the action of the rlarket indicates that if purchases have not already been made in the 160-170 buying range they should be made on slight price dips. Advise previously recorlmended issues, particularly the thirt'-one stocks specinlly reconended in our letter of February 11th. March 22, 1948 EDMUND II. TABELL SHIELDS & COMPANY Closings Dow-Jones Industrials Dow-Jones Rails DOVi-Jones 65-Stock 173.66 51.76 63.04 The opinions expreued In Ihb letter are the personal Jntl!lrpretatiM of ,-'rt. by . Edmund W. label! and are not presented as the opinions of Shlekb & Company.

Technical Market Action The market sees to be following a noal technical pattern;sually after the type of gap witnessed last Saturday, the market consolidates for several days before resuming the oain trend. .lliile most ordinary gaps are filled a short time after their occurrence, it would appear that last week I s gap was of the breakaway variety, that is, a sharp overnight breakauay out of a prolonged period in a narrow trading range. Usually, this e of gap is not filled during the present phase of the oarket. The industrials reached an intra-day high of 175.23 on Monday. The first supply area is 175-176, so it is lOGical to expect sooe resistance at this level. Houever, do not believe much of a decline will occur at this stage. Expect the 172 1/2-171 level to furnish good support and would buy recommended issues on minor dips. After some possible further irregularity, expect a testing of the 179-181 area. Stronger upside resistance nay be met at this point. ' On ITednesday, the rails continued their excellent technical action by reaching a new high for the nove at 52.47, just a shade above Monday's high of 52.43. The rail average is not far away fron the January high of 54.17 and would not be surprised if this level were penetrated on the next upswing. As to individual issues, continue to advise the stocks in our recoomended list with particular reference to the thirty-one issues in our letter of February 11th. As to groups, believe the rails are outstanding. Also, in general, prefer the heavy industry shares, ulthough there ure also Sooe outstanding bargains in other groups. For the Iloaller investor without ueans of proper diversification, suggest the shares of listed investoent trust issues, nost of which are selling at substantial discounts fro! their 'asset value. March 24, 1948 EmlUND W. TABELL SRIELDS & COMPlINY Closings Don-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 173.62 52.06 63.12 Tlte ODinlons upressed In this fotter ant the penonal Interpretation of charts by Mr. Edmund W. rabell and are nof presented as fhe opinions of Shields & Company. J

Technical Market Action J The thirty stocks mentioned in my special letter of Februexy 11th have, in nost instces, sho.m bettor than average action. These stocks were all selected because of their large potential llccunulation areas. While most of them have moved up from their Februnry lows, substantially higher levels are indicated in the event of an upside penetration of the lonb eighteen-nonth trading renges. I an re-listing these issues below together with their potential long term price objectives. ApproxiMate Price February 11th Recent !pproximate Potential Price Long Term Objective Addrensograph Bigelow Sanford BliSS, E. W. Borg Warner Chicago North I'/estern Colunbia Gas Doehler Jarvis Electric Power & Light Elliot Conpany Fansteel Flintkote Gulf Mobile & Ohio Hewitt-Robbins Illinois Central Industrial Rc.yon International Minerals & Cheo Kansas City Southern Mesta Machine Montgo!Jery War,d Nntional Supply New York Air Bruke Phelps Dodge Radio Corp. of America Seaboard Airline Sharon Steel Southern Pacific Square D U. S. & Foreign Wheeling Steel Youngston Sheet & Tube 29 56 24 44 15 10 30 13 15 11 31 13 2l 28 39 23 24 38 49 19 36 41 8 14 30 44 15 17 39 67 33 70 60 100 26 50 52 85 16 35 12 20 35 75 18 43 21 60 14 32 35 60 17 29 24 50 31 60 46 85 28 45 29 60 38 75 53 90 23 36 38 80 48 90 10 20 16 36 33 65 50 100 20 40 20 45 41 100 74 1/.0 Obviously, these price levels are for the longer tern and any price advances to the levels oentioned will be puncuat.ed by sizecble technical recessions along the line. As is nornal technically, the market continues to meet resistance at the 175-l176 supply area in the Dow-Jones industrial average. The cornction of the sharp ten point advance in five trading days seews to be taking the form o a consolidation rather than a decline. Continue to expect support in the 172tllt arer. followed by a continuation of the internediate upswing to the next reslstance area at 179-181. Froll that point, it is possible that a secondary correction of the fifteen-point !,dvance oi!;ht occur. This correction could retrace a third to a half of the advance and bring the averaees back to 175-172. BeliEve such a technical correction will be followed by a testing of the July high of 187.66 and a possible bull narket signal. As for the rails, would not be surprised if they penetrated the 54.17 high of .January on the next advance. The advance could carry to 57-58 followed by a technical correction back to 55-54. Believe the longer tern objective in the rail ayerage is in the 75-80 area. Continue to consider selected rails as outstandingly nttractive. EDMUND W. TABELL March 29, 1948 SHIELDS & COMPANY Closings Dow-Jones Industrials 173.65 Dow-Jones Rails 52.42 Dow-Jones 65-Stock 63.26 The opmions expressed in this leHor ere the penona' irTterprelatkln of charts by Mr. Edmund W. TabeU and are not presonted as the opinions of Shiekb & Comn't.

Technical Market Action Both averages have brolwn out of the Hne fornation of the past few days. On Thursday, the industrial average reached a high of 17S.14and the rails reached a high of 54.06. The high on the ruils \las just a shade below the 54.17 hibh of early January. If the LlDrkGt follows a nornal technicd pattern, SODO tenporary resistence night be expectfl0. at the 179-1S1 level of the industrials an'! either at around present le,vels for the rails or at 57-58 if the 54.17 high is penetrated. This resistnnce could be follormd by a one-third to one-half correc Gion of the aevance fran the Harch lows of In5.0) Md 48.8). Under t.hese circu1stances, it lfOuld seen that there is chance for a trnding turn by selling on strength froo present levels nd buyinG back at 175-173 ancl 53-52. HOI/ever, it nust be realizeu that the narket has a clynaoic potential upside pattern. The potential base areas forned by both averaGes would indicate the possibility of lon&-tern objectives of 250-260 and 75-S0, if both averaees penetrate the hjglls of 187.66 and 54.17 and signal p. bull narlcet. The volune indications of the past triO weeks i.ndicate the possibHity of a chull;e in the fenr psychosis which has held back the narkct lor the past year in the face of record earnings. As I have scid so'nany ties before, the stage is sct for a trtrlendous bull w.rket. All that is needfld is a che.nge fro,l a nation of econoDic hypochondriacs to U l1oe sensible evaluation of earnings, balanefl sheets and prospects. Under the circunstences, playing for the r.linor swings could prove E.xpensive unless one is Hillin;; to re-enter the lJarket at higher prices in the ever-t that the nornal tecrulical corrections do not take place on schedule. A nunber of issues in our reconnended list have either outpaced the narket and are very near their intenLedillte tern obj cctives or they have about rellched near-tern resistance. It nay be necessary for these issues to consolidate and back and fill in a trading range before the rdvnnce is resuned. However, with the eeneral narket indic(lting subsknticlly higher levels there aro, on the other hand, a great nany issues that appear to have just Dtarted their upsl1ing. It would SeeD adn sable to teke profits on the first '!entioned t;roup anel awitch into issues in the last nentioned catogory. \'lith that idea in nind, I suggest the folloWing. Allegheny Ludlun Steel – recom1ended ut 2S. Lst sale 31. Stock runs into resistance at 32-34. Suggest sViitching into Sharon Steel (34 1/8). Barnsdall Oil – recormended at 21. Last sale 39 1/2. Base count suggests 41-45. Stock is close enough to objective to warrant swltching into either Mesta i.lachine (40) or Nen York /,ir Brake (39 1/2). Both these issues are-near their lovis. Consolidated Vultee – reconnended at 12. Last sale 15 5/8. At 16 resis tance level. AbEi ty to penetrate rellis tance Vlould be bulli sh but would prefer switching into Eastern Air Lines (19 7/8) or Electric POYler & Light (1St). Houston Oil – rccorJl.;onded in the 17-15 buying ranbe. Last sale 27. Near internediete tern objective and resistance. SuCgest taking profits ru1d switching into Kansas City Southern (28 l/S), Seaboard Oil – reconnended at 23-25. Last salo 43. Near internedia objective and resistance. SUGest taking profits and switching into Alleghany, preferred (43 1/4). Mesta Machine (1,0) or New York Air Brnke (39 1/2). Sperry Corp. – recooDended at 23 3/S. Last sale 27 3/. Suggest switching into Kansas City Southern (2S 3/S). Texas Pacific Coal &Oil – Reconenaed at 29. Last sale 49. Base count suggests Southern 50-55. HO1f;v8r, Pacific (51) or is close heeling enough to Steel (43 objective 7/S). ' to sug, gest s\litching into Twentieth Century-Fox – reconnended at 22. Last sale 25 1/4. Near resist- ance and tenporarJ objective. Suggests need of nore baCking and filling before further base is forned. Suggest stching into International Minerals & Chenical (29 l/S) or Kansas City Southern (2S 3/8). United Aircraft – reconnended at 20 liS. Last sale 28 3/4. Base count sugGests first rally objective of 28-30. Appears to need further backing and filling to forn further base. Switch into International Minerals & Chenical (29 1/8) or Kansas City Southern (28 3/S). EDMUND W. TABELL April 1, 1948 SHIELDS & COMPANY The opinions expressed in thili lePer are the penonal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.

Technical Market Action The rail average, at Wednesday's intra-day high of 55.06 was in new high territory for the past eighteen months. The industrials also have moved ahead and reached a new high for the move at an intraday peak of 179.38 on Tuesday. At this level, the average has entered the lower part of my suggested 179181 upside resistance area. It would be normal technical action if the pace of the advance slowed down somewhat at this stage. However, do not expect much of a decline. As yet, there are no signs of distributional tops and any decline would meet support at 175-174. Present indications pOint to a trading range for the next week or so in an area bounded roughly by 181 and 175. The long term trend continues to point higher. The rail average, by penetrating previous resistance levels, now indicates a long term uptrend to an eventual 75-80. A penetration of the July high of 187.66 would confirm a new bull market and indicate an eventual objective of over 250 for the industrial average. In our last letter, I suggested taking profits in a number of issues that had either reached near term objectives or resistance points. These issues included Allegheny Ludlum, Barnsdall Oil, Consoli'dated Vultee, Houston Oil, Seaboard Oil, Sperry Corporation, Texas Pacific Coal & Oil, Twentieth Century-Fox and United Aircraft. Profits on these issues were fairly substantial and on the nine issues averaged about 70. Also suggest profit taking on the following issues. Chrysler was originally recommended in a range equivalent to 40-42 for the present stock. Some resistance may be met at 62 and some backing and filling needed before a resumption of the advance. Wednesday's close was 60. General Motors was originally recommended in the 53-50 buying range. Action may be slow from here on and other issues appear more attractive. Wednesday's close was 56 1/8. Ohio Oil was originally recommended in the 21-23 area. Its objective is 38-41. At the recent high of 35 it is fairly close to this objective and a switch into issues with greater possibilities is suggested. Suggest replacing these issues with selected recommended issues. Particularly like Electric Power & Light, International Minerals & Chemical, Kansas City Southern and Sharon Steel. Would purchase these issues on slight dips. April 7, 1948 EDMUND W. TABELL SHIELDS & COMPANY Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 178.33 54.75 65.21 The opinions expressed in 'hi' letter BfA' the personal inlerprotolltion of cherb by Mr. Edmund W. Tabel! and are not presented 81 the opinions of Shields &. Company.

Technical Market Action , For the past six successive trading days, the industrial average has reached an intra-day high of between 179.14 and 180.19. With volunie turnover heavy, it appears that the average is defin'itely in a resistance area. This coincides with my previously expressed opinion that the first important upside resistance would be encountered in the 1'79-181 area. However, I seriously doubt that any important decline will occur at this point. The favorable action of the rail average in penetrating its former high and continuting to move higher indicates that the trend is upward and that the 18'7.66 high of the industrials will eventually be penetrated. While it would be entirely logical to expect some sort of correction from, around this level, I believe any decline will be modest and would be limited to an extreme of 176.175. With most people expecting a de-' cline, it would not be surprising if we witnessed a consolidating move instead followed by a rally to the next important resistance at 185-187. While it may be possible to make a trading turn,at this point, it may require extreme agility to get out and back in again with much of a profit. It must be realized that the potential dynamite is on the upside of this market and not on the dOwnside. For example, I notice that several of the trading services that are bearish, or have recently sold out the market, are advising re-entering the market if the average reaches certain pOints on the upside. And, of course, if the averages decisively penetrate 187.66, there should be considerable Dow theory buying. Continue to advise the purchase of recommended issues on minor rice dips. Particularl like Celotex (26), Eagle Picher (22 3/4) Eastern Airlines (19t), Electric Power & Light (19), Gulf Mobile & Ohio (16 5/8), Illinois Central (32), Kansas City Southern (29t) , Joy Manufacturing (38), National Supply (22i), Northern 1 Pacific (2oi), Revere Copper (19 3/4), St. Louis-San Francisco (92)' Seaboard Air Line R;R, (l'7i) , Southern Pacific (51i) and U. S. & Foreign Securities (21t). EDMUND W. TABELL SHIELDS & COMPANY April 12, 1948 Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock 179.05 55.03 65.47 nre opinions oxpnllSed In 'his fetter ate the personal interpretation of charts by Mr. Edmund W. Taben and are not presented as the opinions of Shields a. CompInY. , …..

,-, Technical Market Action )' The industrials reached a new high for the move at 180.63. The market gives thlappearance of slowly eating through the 181-179 resistance which has held back the llnrket for the last ten trading clays. The process has been slow but each successive push has succeeded in cr.rryinG a little bit deeper into the resistrulce as witness the 179.31 high of April 7th, tile 180.19 high of April 12th, end Friday's high of 181.69. During this ten-day period the 10Vl was 177.70 whcll was reachd on the first day of the entry into the 179.181 resistance area. At Friday's high of 181.69, the averae was very close to the December 31st high of 181.82 which was the top of the last interoedle.teupoove. Penetration of this level would be technically important end invicate a further rally to the 185-187 reSistance and a testing of the July hign of 187.66. l'ihcther the market succeeds in penetrding the 181.82 high immediately or after a minor setback is of no great long trn significance. The Dnount of potential buying power that is awaiting a ree.ction will most likely liIlit any decline to relatively cinar proportions. The technical pattern indicat..s that short tern traders end those investors who hnv nissed the advance shoulc add Ito holdings on Dinar dips to 176-175 (if it occurs) or on a penetrc.tion t 182 on the industrial average. The rnil average has, of course, already given a bull Darkat signal of its own by penetratlJ1g the January high of 54.17, which was the high of the long trading rCJ1ge since Septeuber 1946. The penetration has been decisive with the rail average reaching a high of 56.54 on Friday. The long ten. inlicntion on this average is now 75-80. The first illportant resistrnlce is at 60. If the industrial average penetrates the July high, the long tern in- dication would be above 250. I nade this statenent recently at a round table diSCUSSion of Ilarkt prospects and it was greeted by reised eyebrows. It is perhaps a coollentary on the depressed state of thought of the last eighteen nonths. While general sentilJent is changing, it is still tinged with pessi1isn and doubt. There is no reason why such a long tern objective should be con- sidered stcrtlin. In fact, it is quite .Iodest. It woulcl nOM n rise of about 55 fron tile 1947 low of about 160. This would be the snallest percentc.ge rise for a bull i1arkot in the last twenty-fii.ve years ond one of the snallest on record. The recent 1942-1946 bull !.lnrket wns over 100 end even the short 1938-1939 bull. TJurket wes 60. – While a penetration of the 187.66 high llU'3t be awaited before a dofinit, confiI'lllltion of a new bull fl!lrkct is indicated, conti1111e to believe that t'1 trading range of the last eighteen ncnths is on accur.r,ll c ti.on arc;u indice,';H!;; considerably higher le,-els over the longer tern. SOlle 7'sistance and cO'7e-tion nay be en00uotered before the July hi.gh is penetr.te1 ,fl'; ny -Hork indieD'., .hat no worthwhile reaction is indicated until the nnrket. T,r.!les 195-200 on c.r.3 industrials and about 60 on the rails. At that poin, ,,mld expect u thj rJ or half correction of the advance frou the February lo, ris nieht carry tn3 r.veragcs back to 185 and 55. Believe any intervf;r,int; c-.or.'ection will be of cirJy ninor inportance. April 16, 1948 Closings Dow-Jones Industrials Do\-Jones Reils Dow-Jones 65-Stock EDMUND W. TABELL SHIBLDS & COMPANY 180.63 55.86 66.10 The opinions expressed' In rhis letter are lhe personal interpretlliion of charts by MI. ldmund W. Tabell end are nol presenled as the opinions of Shields l Company, –