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TABELL'S MARKET LETTER The technical action of the past week has been mosDt igbeyn4c-41o41uraging. The decline of Monday and Tuesday brought both the short term and intermediate term gauges to a point that has corrected the overbought condition first registered in late August. On Wednesday, the short term gauge gave a buy signal. On Friday, the intermediate term gauge was very close to signalling a buy indication and confirming the shorter term gauge. The longer term gauge was strengthened by the fact that the industrial average, at the week's low of 177.63, had made a near testing of the two hundred day moving average at 175.25. The rails also are showing better action. At Friday's high of 47.93, the rail average fractionally bettered the August 10th high of 47.88. The rail average, however, is still considerably below the January high of 54.93 and the larch high of 49.86'. Ability of the market to give further constructive signals would not necessarily indicate that the market is on the verge of another important upmove of equal scope to the June-August rise. The inference to be drawn from the recent favorable action is that the market appears to be much less vulnerable to a severe decline than at any time within the recent past. Some more time may be required for some individual issues, to complete their potentially bullish formations, but there are many individual issues that have built up sufficiently constructive patterns to indicate a further rise with only normal corrective reactions. Such issues will be added to our list in followin6 letters and wires. I would switch out of the following issues in our recommended list Last Price.. Originally Reeoinmended American 'Seating Brooklyn Union Gas Sperry Corp 41 3/8 33 1/2 25 1/4 27 26 1/2 26 For repurchase advise the following issues in the recommended list Better Grade Issues Last Price Allis Chalmers American Cyanamid 30 3/8 46 3/4 Amer. Home Prod. 27 1/2 Borg Warner 46 1/2 C. 1.T. Finane ial Commercial Credit 54 3/8 53 3/4 Endicott Johnson 31 3/4 Federated Dept.Stores 30 General Time 20 1/8 Hewitt Robins 14 5/8 Intertype 28 1/2 Kresge 41 1/8 Phelps Dodge 42 1/4 Shell Union Oil 36 3/8 Stand.Steel Spring 16 1/8 Speculative Issues Last Price American Airlines 9 378 Amer.Power & Lt 12 1/8 Avco ' 5 1/2 Budd Company 11 Carrier Corp 14 3/4 Combustion Eng. 25 1/2 Continental Baking 15 1/2 Denver & Rio Grande 24 7/8 Distillers Seagram 16 1/2 Eastern Airlines 14 1/4 Inter.Min & Chern 30 1/8 Lowenstein 24 3/4 McKesson & Robbins 38 3/4 Niagara Hudson 13 1/2 Penn-Dixie Cement 22 1/8 Pressed Steel Car 6 Radio Corp 11 3/4 Reynolds Metals 19 3/4 St. Regis Paper 7 1/2 Schenley 29 Shamrock Oil & Gas 27 3/8 Studebaker 22 5/8 Sunshine Mining 11 1/8 United Mer.& Mfgrs 12 7/8 EDMUND w. TABELL SKil1fn'fl1all, n6r,b. JoghlJ III an offer or solicitation of offers to buLPl&JlrItlHOE 3m tUiLl'It,n' Goodwin may have an Interest In some or all of the securltlos mentioned harein. The foreqolng material ha5 been prepard by U5 as ,!' matter of 'nformatio,n only. It Is baed . IslIpon Information believed reliable but not necessarily complete, is not guaranteed as accurate or final -an, , t Intended to foreclose Independent Inqui ry.