TABELL'S MARKET LETTER 909 STATE ROAD PRINCETON, NEW JERSEY 08540 DIVISION OF MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER AMERICAN STOCK EXCHANGE October 3, 1975 I-',,–'- -The'800-790 -level -onthe–Dow Jones' Industrla'lo-Average ;whlclFhad -provltted -demafitnor– equities on previous drops In the latter part of August and mid-September, was finally breached in last week's trading In three consecutive days of decline on Monday, Tuesday and Wednesday. The Average gave up some 35 paints to reach a closing low of 784.16 before a rally back into what must now be con- sidered overhead supply took place Thursday afternoon and Friday morning. As the market plunges to new six-month lows, it Is perhaps worthwhile to take stock and, once again, reassess the prospects. We think, first of all, the probabilities point in the direction of lower prices. As our read- ers are aware, we have, indeed, voiced this suspicion ever since the 800 level was penetrated for the first time in August. When the 790 level twice provided impressive evidence of demand, we felt It might be necessary to reverse our position, but that possibility was negated as the 790 level was shattered this week. From a longer term point of view, however, — and this is probably the most imPortant factor to note — we do not view the anticipated weakness as the start of a major bear market. We do not think that the distributional tops which have presently formed are of sufficient magnitude to suggest such a case, and the July high was totally devoid of the deterioration on the part of the leading indicators which have forecast major bear markets in the past. What we are looking for, then, is the continuation of an intermediate-term decline within the context of an ongoing upswing. Such a decline is a phenomenon not without precedent. If we are correct in our contention, the downswing that began on July 15, will be the tenth in a series of declines greater than 10 which have Interrupted ongOing bull markets since 1949. A list of some relevant figures for each of the nine previous declines and the current one follows. Star-t Endl .,Ghallge ..,.,….–…..,.,..,,,,,,.–No.,ofE I,.- Date Jun 12, 1950 Jan 5, 1953 Sep 23, 1955 Apr 6, 1956 Aug 2, 1956 Jan 5, 1960 May14, 1965 Sep 25, 1967 Apr 28, 1971 Jul 15, 1975 Date Previous Advance Decline Trading Days Jul 13, 1950 41. 10 -13.55 22 Sep 14, 1953 48.80 -13.04 176 Oct 11, 1955 90.79 -10.02 12 May28, 1956 18.80 -10.03 36 Feb 12, 1957 II. 12 -12.69 132 Oct 25, 1960 63.29 -17.42 205 Jun 28, 1965 75.38 -10.54 30 Mar21,1968 26.70 -12.51 122 Nov 23, 1971 50.65 -16.08 146 Oct 1, 1975 52.67 -11.07 55 to date As can be seen, past declines of thiS nature have had some Similar characteristics. They have ranged in terms of percentage drop from around 10 In 1955 and 1956 to as much as 17 m 1960. They have tended to take place after the market has already advanced a goodly percentage. With a single excep- tion, all of them followed market rises of 40 or more and the current case is typical, taking place, as it does, after a 52.67 rise on the Dow from its low of last December. What is especially Interesting is the length of past mtermediate-term declines. A glance at the table shows that they can be rather neatly divided into two categories, long ones and short ones. As the table shows, they have either been over with quickly, in around 30 days or less, or they have extended themselves in time.to upwards.of 120 days .. This holds some implications for theGurredown -S';lng, now 55 days old, since it is presently weh past the short time-category. This would'seem'to suggest that the weakness may extend further in time. Were the current market to follow the precedent of previous ones, weakness could well continue past the first of the year. However, with the market already down 11 ,the further percentage drop from here if the present downswing, as we think It will, falls into the intermediate-term claSSification, is hardly that great. There IS another characteristic of declines of this nature, moreover, in that they tend to be selec- tive with a great many stocks proving resistant to the trend. We expect that this will also be true in the case of the current weakness. Dow-Jones Industrials (12 00 p. m.) S & P Compo (1200 p.m.) Cumulative Index (10/2/75) 465.41 AWT/jb 800.77 84.51 ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL No statement or expression of opinion or any other motter herein contolned IS, or IS to be deemed to be, directly or indirectly, on offer or the soliCitation of on offer to buy or sell ony security referred to or mentioned The mOiler IS presented merely for Ihe conver,ence of the subscriber. Wflile e believe the sources of our Informo- hon 10 be relloble, we In no way represent or guarantee the accuracy thereof nor of the statements mude herem Any actIon to be taken by the subscflber should be based an hIS own mveSl1gatlon and Information Janney Mangomery Scott, Inc, as a corporatIon, and Its offICers or employees, may now have, or may laler take, posItions or trades In respect to any SecUr,eS mentIoned In thIS or any future Issue, and such posltJon may be dolferent from any vIews now or hereafter expressed In thIS or any other Issue Janney Montgomery Scott, Inc, whICh IS regIstered WIth the SEC 05 on Investment adVIsor, may gIve adVice to Its Investment adVIsory and othel customers Independently of any statements made ,n thIS or In any ather Issue Further informatIon on any security mentIoned hereIn IS avaIlable on request

TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON. NEW JERSEY 08540 DIYISION OF MEMBER NEW VORK STOCK EXCHANGE, INC MEMBER AMERICAN STOCK EXCHANGE – -….- – –. – -, , ,,,-, '-, -T';,-,- . – —.,;;… ——.-. Octiber'fO-r975 0-;;–.; — General market action since August has been, to say the least, a bit confusing. The Dow reached a low on August 21 of 791.69, duplicated It on September 16 at 795.13 and penetrated that low sllghtly at 784.16 on October 1. The pattern of the S & P 500 was a llttle bit different In that Its October 1st low, while below the August one, was higher than the one In September. Over this period group action was extremely diverse and may provide some clues as to future leadership. The table below llsts 101 S & P Industry group indices, which are computed each Wednesday, showing their lows of September 17 (the day after the general market made its low) and their lows of October 1 expressed as a percentage of their August 20 low. Some Interesting conclusions may be drawn. Groups which held above their August low on both subsequent dates are showing better-than-market strength. Those groups which met this criterion, together with the requirement that the October low be above the September one, are marked with a plus sign in the table. Groups that have moved sharply be- low their August level obviously are demonstrating weakness which could continue were the market to turn down. Those groups where each of the three successive lows was at a lower figure are marked with a minus Sign. Auto Parts Price as of 8/20 WL. ….!.QL!. .w.z…Price as of 8/20 ….!.QL!. 93.3 100.0 Foods-Can.Foods 97.4 99.3 Railroads Price as of 8/20 M1 .!.QLl 97.7 102.1 Aerospace 100.3 101.2 Foods-Dairy Prod. 98,3 102.4 -Rlrd.Equlp. 99.7 99.5 Air Freight 95.9 111.3 Foods-Meat Pack. 108.8 105.1 Real Est. 93.2 101.'7 Air Transport 92.6 105.1 Foods-Pack.Foods 98.6 102.9 Restaurants 103.8 101.1 Aluminum 100.1 87.4 Forest Prod. 96.8 97.9 Ret.Stor.Comp. 100.5 103.4 …….,. Atol)lic,Energy ,90.,410LlGold,Mining n.10'l,.4R!'t.Stor.Dept.9B.710), .0, Automobile 101.1 103.1 -Home Fum. 98.2 98.0 Ret.Stor.Dlsc. 106.8 101.2 Auto Parts-Orig.Eq. 101.9 101.8 Hosp.Supplies 94.6 103.5 Ret.Stor.Fd.Chns. 96.2 106.8 Auto Trucks & Part 99.4 100.0 Hotel-Motel 102.6 101.2 Ret.Stor.Mail Ord. 102.7 101.9 Beverages-Brewers 90.9 98.2 Lead & Zinc 105.9 102.3 Ret.Stor.Variety 101.7 105.6 Beverages-Dist. 93.8 100.2 Leisure Time 95.0 102.2 Shoes 106.3 111.9 Beverages-Soft Dr. 94.1 101.3 Machine Tools 99.7 101.7 Soaps 96.8 101.4 Bldg.Mat.Composite 94.7 97.6 Machinery (Agrlc) 106.5 101.0 Steel 105.5 94.9 Bldg. Mat.Air.Cond. 94.2 101.6 Machinery-Comp. 98.2 98.5 -Sugar-Beet Ref. 99.2 97.9 Bldg.Mat.Cement 96.8 102.7 Mach.Const.Mat.Han.96.9 101.1 Textiles-App.Mfg. 96.4 107.4 -Bldg.Mat.Heat.P!. 99.9 97.9 Mach.Industrial 96.3 99.8 Textiles-Syn.Flbr. 103.4 102.8 Bldg. Mat. Roof-Wlbd. 93.3 95.6 -Mach.& Serv.Oil W. 99.1 97.0 Textile Prod. 102.5 102.1 -Chemicals 99.6 94.5 Mach.Speclalty 103.2 96.4 Tire & Rub.Gds. 102.4 101.6 Coal (Bit.) 100.7 100.1 Mach.Steam Gen. 94.0 101.9 Tobac-Clg.Mfg. 101.6 103.2 Confectionery 100.2 104.4 Metal Fabricating 96.8 99.1 Toys 103.0 92.8 Conglomerates 102.8 99.3 Metals Misc. 100.3 99.7 Truckers 97.3 102.4 Contalners-Mt!.& G!. 101.1 101.0 Mobile Homes 93.8 101.2 Vending Mach. 97.0 103.2 Containers-Paper 102.8 100.4 Motion Pictures 106.9 111.4 -Real Est.Inv.Tr. 96.3 90.4 Copper 102.2 95.1 Offlce Equip. 101.1 101.8 Elec.Power 100.8 101.2 Cosmetics 96.5 100.4 Offshore Drllling 89.2 95.0 Natural Gas Dist. 98.9 104.3 Drugs 96.9 99.9 Oil-Composite 99. I 100.9 Natural Gas PI. Lin 102.0 102.0 -Elec.Equip. 99.1 98.8 Oil-Crude Producrs 89.4 105.2 Telephone 98.9 101.4 Elec.-Electron.Mj.Ccs.98.5 100.8 Oil-Dom.Integ. 98.5 101.5 -Banks-N.Y.City 93.0 90.4 -Elec; Hhld''lipp– -87;6 '107. 3 OilIfitl.'Integratd-100. 1- 100 3-Banks-Outslde NYC – 92. 699 I– . – Electronics 95.9 103.5 Paper 100.2 95.4 Sav.& Loan Assoc. 95.3 102.2 Finance Cos. 95.4 96.7 Pollution Control 96.2 102.3 Insurance-Life 96.6 101.0 Finance-Sm.Loan Cos. 99.2 104.6 Publishing 96.9 103.6 Insurance-Multl.Lin.89.6 109.9 Foods-Composite 98.8 102.2 Rad-Tel.Brdcstrs 98.4 102.2 Insur.-Prop.Liab. 90.5 106.6 Invest. Cos. 96.9 101.4 Dow-Jones Industrials (1200 p.m.) S & P Compo (1200 p.m.) Cumulative Index (10/9/75) 479.89 AWT/jb 825.72 88.64 ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL No stotement or expression of opinion or any other matter herein contOined IS, or IS to be deemed to be, directly or indirectly, on offer or the soliCitation of an offer to buy or sell any sewnly referred to or mentioned The matter IS presented merely for the converllnc,-, of the subscriber While we believe Ihe sources of our Informo lion to be reliable, we In no way represent or guaronlee the occuracy thereof nor of the statements mode herem Any action to be token by the subscriber should be based on hiS own Investigation ond information Janney Montgomery Scott, Inc, as a corporation, and Its officers or employees, may now hove, or may later toke, posilions or trades In respect to any secunltes menlloned In th,s or any future Issue, ond such pOSIIIO'1 may be dIfferent from any views now or herealfer expressed In thiS or any other Issue Jonney Montgomery Scott, Inc, which IS reglltered With the SEC as on Investment adVisor, may give adVice to ,ts Investment adVisory and other customers ,ndependently of any statements mode In th,s or In any other Issue Further Information on any security mentroned herein is available on request

TABELL'S MARKET LETTER .' 909 STATE ROAD, PRINCETON NEW JERSEY 08540 DIVISION OF MEMBER NEW YORI( STOCK EXCHANGe, INC MEMBER AMERICAN STOCK EXCHANGe – October 17, 1975 In the past 2 1/2 weeks, the Dow-Jones Industrial Average has essentially crossed fam i Ila.J.tQJ;Y–!mo-'Q!lg,.JI;.P!1ljl,!Q1c10!!l.to. th etopof.J;hetradi ng,ra nge-a hough ly,,–8 0 0,..,8 5O-i n .–.-.,,–II which it has remained since last August, after moving down from its mid-July high around the 880 level. BeginnIng from a closing low of 784.16 on October 1, the index has moved sharply higher to reach a closing high of 837.22 on Wednesday, with an intraday high of 851.46 beIng posted on Thursday. The present, however, happens to be one of those cases where it is necessary to look beyond the Dow in order to get a true story of what is taking place in the market. In terms of breadth, for example, the advance has not been a II that Impress ive. In the entire period during which the Dow moved ahead some 55 pOints, there was only one day on which more than 1000 Issues advanced, that day being FrIday, October 3, two weeks ago, when a 20-point rise for the average produced 1131 advancing issues. Even on that day, advances constituted only 64 of the total issues traded, a rather anemic figure by major reversal standards. If the Dow has been outperforming breadth, however, it has been underperforming the broader-based indices. While the Dow has s imply moved up toward the top of its recent trading range, the Standard & Poor's 500, S & P 425, New York Stock Exchange Compos ite and NYSE Indust- nal indices had all moved decisively out of their August-October trading ranges, and all had clear- cut bases suggesting moderately higher levels. To get a real feeling for what has been taking place over the past two weeks, it is necessary to understand why this lead of the broader-based indices over the Dow has occurred. The reason, of course, lies m the presence—with a heavily weight— in the broad-based indices of the high – total – market – value, technology-based compantes which are largely absent in the Dow. The broad-based indices are computed. essentially, by weighting – each-s tocbi-n'ir-0porti-ont)-'the-tota1-va'Iu-e-oHhe–Share-s-outstarrdlntrs–alolifPa1l191KllIBM-,-..,,..' for example, with a total market value of 31 billion, is a major factor in the action of these capital- weighted indices, while totally absent in the construction of the Dow. What we are saying, of course, is that the first-tier growth favorites of a couple of years ago have, over the short-term, begun to outperform the general market. What we have seen so far, then, is not necessarily as much a sign of a major reversal, as one of a shift in leadership. The question is how long can such leadership be sustained and what does it portend for the market as a whole. If we are to regard the capital-weighted indices mentioned above as a fair barometer of this leadership shift, the answer is that it can probably continue at bit farther. If the pattern on the Dow is a bit obscure, the patterns on these indices are rather clear-cut, all of them, as noted above, having broken out of fairly-well-defined base formations. These base formations almost uniformly suggest a return to an area around, but not decisively above, the highs of last July. The S & P 425, for example, whose high las t Ju ly was 107, has an upSide objective of 104-105, and the 500, with a July peak of 96, has an upside target around 94. The New York Stock Exchange Composite has an upside objective of 50 versus a July peak at 51, and the Industrial index has an upside target of 56 vis-a-vis a mid-summer top at 57. Individual patterns on the heavily-weighted stocks in these indices would appear to suggest that these targets are, indeed, plausible. Whether the growth stocks can provide sustained long-term market leadership at thiS juncture is, in our view, at best questionable. Their premiums over the rest of the market are, aat this pOint. fairly high andwould become even higher were they to cO..tinue.to cutperf..rm the – market o'Ver' short-term. It- ;-e';;s-to-us 'uollJeVth-at Tongterm market advance cantle'sus- tained by returning the growth issues to the position of preeminence vis-a-VIs the rest of the market that they enjoyed two years ago, a position we now know, in the light of hindsight, to be unsustainable. It is, therefore, in our opinion, unrealistl c at this stage to look beyond the near-term prospects of a return to around the July peaks. If, along the way, the market could develop more breadth and vigor than it has shown on the rally so far, the prospects for a broad and sustained move ould become enhanced. At the moment, however, the phenomenon of a sharp Improvement in relative strength on the part of the growth issues has done little more than becloud the general market prospects. Dow-Jones Industrials (1200 p.m.) 834.38 ANTHONYW. TABELL S & P Composite (1200 p.m.) 89.08 DELAFIELD, HARVEY, TABELL Cumulative Index (10/16/75) 487.60 AWTlJt No statement or expressIOn of opinion or ony other motter herein contolned IS, or IS 0 be deemed to be, directly or indirectly, on offer or the 50111;llollon of on offer to buy or sell ony security referred to or mentIOned The maller IS presented merely for the convellencc of the subscnber While we believe the sources of our informatIon to be relloble, we In no way represent or guorontee the occurocy thereof nor of the stotemen's mude herem Any ccTlon to be token by the subscriber should be bosed on 1'\lS own investIgatIon ond Informatlo'l Jenney Montgomery Scott, Inc, os a corporotlon, and Its offlC!HS ar employees, moy now have, or moy later loke, pOSItIOns or trades In respecT to any seCUTltles mentioned In thIS or any future Issue, o'ld such posItIon moy be dIfferent from any vIews now or hereofter e)l'pressed In thIS or any other Issue Janney Montgomery Scott, Inc, whIch IS regIstered WIth the SEC as on Investment odvlsor, may gIve adVIce to Its Investment adVIsory ond olhel customers Independently of ony statements mode m thiS or In any other Issue Further InformatIon on any security mentIoned hereIn IS available on request

TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON. NEW JERSEY 08540 DIVISION OF MEMBER NEW YORI( STOCK EXCHANGE, INC MEMBER AMERICAN STOCK eXCHANGE October 24, 1975 The market strength which ha s so far characterized the month of October, continued -Oowqu-JieOt'liy1'beu'St'Iuinldaubsattreldalslamsot vwienegkdwecitihsitvheelym-atrOkne-teswcloiriignhg-tfoerurr istuocrcyefsosritvheepdaasynshroefea1dnovnatnnSceWaenedx–t-h-e-ok-..,….1 pressed in last week's letter the view that the rally had been, at least in part, a shift in market leadership, citing the superior relative action shown by the broader-based indices versus the Dow-Jones Industrials. We went further to suggest that it was quite plausible that these broadbased indices might mount an attack on their old highs without, in all probability, moving decisively through those highs, and suggested that it would be discreet to await further evidence before looking beyond the prospect for a short-term rally. We still think this to be the case, but it is at least worthwhile to examine the various possible aftermaths to the presently-anticipated short-term strength. The first and most obvious alternative is a continuation of the bull market which began last fall, with the major averages moving decisively to new highs. Impressive teclnical arguments can be marshalled in favor of this theory. If one assumes that a major bull cycle began when the market started to move ahead in early 1975 (and the behavior of the market at that time strongly suggested that this was, in fact, the case), then it would be almost without historical precedent for that cycle to have ended just seven months later in July of this year. Almost all past markets that have fallen into the major-upswing category have had a considerably longer life span, and it is at least an arguable premise that, the July-October correction out of the way, the 1975 bull market still has a healthy life-expectancy. 1–4—-..,.,..,.–'–ThecoUhter-argumentrs7of'ColIt-she-rep8atedly -denrcnstratetltltfftcu1ty;-goingL backnow for almost a decade, that the market has shown in getting through, roughly, the 900 level on the Dow. The latest instance of this, of course, was the July-October drop which started from just under that point. As we have repeatedly suggested, the central characteristic of the market of the past ten years has been a broad trading range, and, as the Dow approached 900, we would find ourselves in the upper part of that range. A move decisively above 900 would mean, therefore, not just a continuation of a ten-month-old bull market, but a reversal of the basic pattern which has characterized the market for the past ten years. Undoubtedly, this pattern will someday be destroyed and when it is, the implications will be, in our view, to say the least, highly bullish. There is good reason, however, to suspect that it may not be destroyed immediately. The second possible scenario would be the formation of broadened distributional tops which would ultimately call for a decline to somewhere below the levels of early this month. This would be a phenomenon not without historical precedent for it would complete a typical three-leg downswing from the highs of last July, the first down-leg being July-October, the current rally being the second, or up, leg and the third down-leg being a drop from whatever apogee is reached on this rally. The problem with this scenario is that it is hard at the moment to see the distributional patterns that would suggest it. Such patterns could, of course, form, but they are not present at this pOint in time. . … – – The third and'final possibility is cont-inued backing and filling in-the 800-900 range with an eventual breakout on the upside. This is a possibility that we tend to favor,since we think further broadening at the 800-900 level would make the long-awaited upside attack on 900 more plausible when it occurs. -.— It is, in summary, we feel, a time not to be too dogmatic about a forecast and to be open-minded about market evidence as it presents itself. All of the scenarios above have some degree of plausibility, and investment policy at this stage should, we think, concertrate on individual stocks until overall market evidence makes the major trend direction clearer than it is at the present time. Dow-Jones Industrials (1200 p.m.) 851. 31 S & P Compo (1200 p.m.) 90.82 ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL Cumulative Index (10/23/75) 497.08 AWT/lb No ,Iclement or expreSSIOn of opinion or ony other matter here'n contamed IS, or IS 10 be deemed to be, directly or ondnec1ly, on offer or Ihe sollcllallon of on offer 10 buy tlon to or sell any security be relloble, we In referred no woy 10 or mentioned The moiler .s presented merely represent or guorontee the occurocy thereof nor for of the the conveenc of the subSCriber slotements mude herelll Any acWTiohnile10wbeebteolieevne the sources of our Informoby the subSCriber should be bosed on hiS own tnvestlgohon and Informotlon Janney Montgomery Scott, Inc, as a corporotlon, and lIs officers or employees, may no, hove, or may loler lake, posltlons or Irodes In respecT to ony seCUrities mentioned In thiS or any future Issue, and suth pOSition may be different from any views now or hereafter e.prened In thiS or ony other Issue Jonney Montgomery Scott, Inc, which 's res,stered With the SEC as on Investment adVisor, may give odvltc 10 Its Investment odvlsory and other customers II'ldependently of any slotements mode II'l thiS or In any other Issue Further mformotlon on any security mentioned herein IS ovotloble on request

TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON NEW JERSEY 08540 DIVISION OF MEMBER NEW YORK STOCK EXCHANGE, INC MEMBER AMEAICAN STOCK eXCHA.NGE October 31, 1975 What with the travail of New York City and other publicized ills, it is unsurprising that – a certainount'ofpes simis m–shouldbe'Pres ent iwfina ncia 1'markets.,-l'hat-pe s simismc-isrhowever , '- expressing itself in concrete terms in a number of areas one of these areas being short interest on the New York Stock Exchange, which reached an all-time record level at well over 26 million shares last May and, after subsequently backing off, has recently returned tojust under the 25-million-share level. This sharp rise was little noted last summer, since, at that time, trading volume was heavy, and most analysts tend to view short interest in terms of its ratio to average daily volume, the classic short-interest ratio, which is designed to provide a measure of how many days' trading it would take theoretically to cover the existing short position. With trading volume dropping off sharply and the short interest remaining high, however, this ratio moved above the 1. 8 level as of September 15 (figures are recorded from the 15th of the month to the 15th of the month) before dropping off slightly in October. The table below presents all past occasions since January, 1946, when the short- interest ratio has moved to a level of 1. 8 or above. Also shown are the Dow on that date, the Dow approximately six months (125 trading days) later and the percentage change for the period. Date Short Int Ratio DJIA D..HA 61a1g Chg. Date Short Int Ratio DJIA 6DJIA lat Chg. Jun 1947 1.800 175.49 180.76 3.00 Mar 1958 2.214 453.04 518.52 14.45 Sep 1947 2.006 175.30 167.86 -4.24 Apr 1958 2.179 447.58 541.95 21.08 Mar 1948 1.804 167.62 182.52 8.89 May 1958 2.047 457.86 560.92 22.51 Mar 1949 1.931 176.02 179.24 1.83 Jun 1958 1.901 474.77 565.53 19.12 Apr 1949 – ay 1949- 1.837 176.62 182.67 3.43 Ju11958 2''177 f1520''1n9611l714-Sepl95-8 2.299 278.82 591.64 23.56 202'5n,02'6i2691759– Jun 1949 1.854 164.58 193.63 17.65 Oct 1962 1.985 589.69 710.92 20.56 Ju11949 2.405 173.48 199.39 14.94 Aug 1966 2.030 834.85 853.34 2.21 Aug 1949 1.933 178.97 199.62 11.54 Oct 1966 2.173 771.71 866.59 12.29 Sep 1949 2.310 182.16 203.47 11.70 Nov 1966 2.211 815.31 885.80 8.65 Oct 1949 1.913 186.36 207.78 11.49 Sep 1967 2.044 933.48 840.09-10.00 Nov 1949 1.867 187.98 215.05 14.40 Nov 1967 2.032 855.18 898.98 5.12 Mar 1950 1.927 207.46 218.10 5.13 Feb 1968 1.868 839.23 900.36 7.28 Apr 1951 2.084 256.18 274.34 7.09 Mar 1968 2.205 837.55 956.68 14.22 Dec 1951 2.144 265.48 260.10 -2.03 Sep 1968 1.913 917.21 927.30 1.10 Jan 1952 1.982 270.46 268.03 -0.90 Sep 1969 1.889 830.45 772.11 -7.03 Mar 1952 1.909 264.43 273.84 3.56 Jul1970 1.895 711.66 844.19 18.62 Jul1953 1.854 268.75 286.72 6.69 Aug 1970 2.075 710.84 885.34 24.55 Oct 1953 1.942 271.22 311.78 14.95 Apr 1974 1.851 843.79 648.08-23.19 Sep 1975 1.882 803.19 As is quite clearly shown, the current level of short interest has some historical significance. It has occurred only 39 times in 358 months, and on 33 of those 39 occasions, the market was higher six months later. In the entire record there are only three serious false signals on the part of the indicator, all of them, interestingly enough, occurring fairly recently. One was in September, 1967, when the indicator flashed just as the market was going into an intermediate-term daedclAinperiwl, ithin.the context 1974, oacurred of.the 1966 ;'hen the in -68 bull market. The dicatorfJashed- the en dothofeartbweoarinmsatarknceetsb,u tS'leepdtethmafbb'eore,a'1r9m6'9a,'r'–'I ket's end by some six to nine months. For the remaining periods the results shown in the table speak for themselves. It will be interesting to see whether the present instance is another example of the recently-more-frequent false signals or whether it turns out to be truly a harbinger of higher prices. Dow-Jones Industrials (1200 p.m.) 833.67 S & P Compo (1200 p.m.) 88.86 Cumulative Index (10/30/75) 489.53 AWT/jb ANTHONY W. TAB ELL DELAFIELD, HARVEY, TABELL NOTE The figures in the table differ slightly from those reported in BARRON'S and other publications where average daily volume is based on settlement dates. The figures above are computed on trade dates. No statement or expression of opinion or ony other molter herein tontclned 15, or IS to be deemed to be, directly or Indirectly, on offer or the ollc,totlon of on offer to buy or sell any seclJrlty referred 10 Or mentioned The matter ,s presented merely for the COnVer-lenCE of the subSCriber WhIle Ne believe Ihe sources of our ,nformo- han to be rehable, we In no way represent or guarantee the accuracy thereof nor of the stolemenls mude hereIn Any action to be token by Ihe subscrIber should be based on hiS own inVestigation and Info'motlo Janney Montgomery Scott, Inc, as 0 carpo'otlon, cnd ,ts offICers or employees, may now have, or may later lake, POSitions or trades ,n respect to any seCurtlles men'lOned In th,s or any future Issue, and such oostlton may be ddferenl from any Vtews now or hereafter el'pressed In thiS or any other /5ue Janney Montgomery xon, Inc, which IS reglslered wllh Ihe SEC 0 all Invesl71enl adVisor, may give adVIce 10 lIs Investment odvlwry and othel customers tndependently of any statements mode In thts Or In any other tssue Further tnformotton on ony security mentioned heretn tS ovot!oble on request

TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON. NEW JERSEY 08540 DIVISION OF MEMBER NEW YOAK STOCK EXCHANGE, INC MEMBEA AMERICAN STOCK EXCHANGE November 7, 1975 foftr.pnding thelaltecparLoiQctQber.andearlYNoyemberdeclining irom.its late October high the -stock market rallied in th-e- latte- part of this ';eek's trading and moved up toward- a renewed attack on that high. In terms of the Dow-Jones Industrial Average, a peak of 855.16 had been reached on October 23, this being followed by a dip to a closing low of 825.72 late Mon- day. The remainder of the week saw an irregularly upward move to a Thursday close of 840.92. Our own reading of the market's probable short and intermediate-term direction would be that, over the short term, the market is likely to go lower, although not, in all probability, that much lower, and that, over the intermediate term, it is likely to move higher — again, in all probability, not that much higher. This thinking is engendered by the fact that the tops formed in the last two weeks of October on most indices suggest lows moderately below those reached early this week and by the fact that the upside implications of the July-September base likewise suggest higher levels than have already been attained, implications which, as we have pointed out in past issues of this letter, suggest at the least a test of last summer's highs. This sort of thinking is also supported by the general behavior pattern of the market since last summer. Regarding this behavior, two facts are particularly relevant. The first is that the 55-day, July-October decline amounted to an 11 drop in terms of the Dow, and the second is that it is now 88 trading days since the DOw-Jones Industrial Average last made a new high. These two facts, looked at in the light of history, suggest two conclusions. The first that the market may well make a new high above the July level but that that high is unlikely to be significantly above the July peak, and, secondly, that this whole process may have a good deal longer to go in point of time. . II one is willing to define a decline of greater than 71/2 as being intermediate-term in scope, the following table presents some relevant facts for the six major bull markets since 1949. The first two columns show the start date and the Dow-Jones Industrial Average on that date for each bull market. The second three columns show the date, the Dow and the number of trading days to the high prior to the first 7 1/2-or-greater correction. The next three columns show the date, the Dow and the number of trading days later that the final bull-market high occurred, and the last column shows the percentage of the total move that had taken place at the first high. FIRST HIGH FINAL HIGH of Date DJIA Date DJIA No. Days Date DTIA No.Days move at first high 6/13/49 161. 60 6/12/50 228.36282 1/5/53 293.79 705 50 9/14/53 255.49 9/23/55 487.45 510 8/2/56 520.95 216 87 10/22/57 419.79 8/3/59 678.10 448 12/13/61 734.91 595 82 6/26/62 535.76 5/14/65 939.62 726 2/9/66 995.15 187 88 10/7/66 744.32 0/25/67 943.08 242 12/3/68 985.21 276 83 5/26/70 631.16 4/28/71 950.82 234 1/11/73 1051.70 431 76 The results are, indeed, rather interesting. As the final column clearly shows, with the single exception of 1949-53, anywhere from 76 to 88 of the total move had taken place at the hlgh prior to the first intermediate-term correction. If the 304 points which the market gained from its December, 1974 low of 577.60 to its July high of 881. 81 constitute 80 of the —t-pootian-lt mov-e s and, 'i-t would -th-en-be posslbly, a good udnerae-la lliesstisc… t.o. ' e x- p e c-t .t h a t -' h-i g h to be ex ce e- de d by –' m-u-chmo-r-e-than75 However, it is also interesting to note that all of the previous bull markets under study had a good deal longer life in terms of time after the first lntermediate-term drop. The shortest continuation was for nine months, from May, 1965, through February, 1966, but, as the table shows, other continuations have lasted for as long as two years. Thus, the available figures would suggest that, while the upside dynamics for the market are unlikely to be as great from here on out as they were in the first half of 1975, a good deal of time may lie ahead before serious general market weakness can be expected. Dow-Jones Industrials 11200 p. m.) 836.67 ANTHONY W. TAB ELL S & P Compo (1200 p.m.) 89.43 DELAFIELD, HARVEY, TABELL Cumulative Index (11/6/75) 492.20 AWT/jb No slatement or expression of opmion or any other motter herein contOlned IS, or IS 10 be deemed 10 be, directly or Indirectly, on offer or the soliCitation of on offer to buy Or sell ony security referred to or mentioned The mOiler IS presented merely for the conver'!cnc!; of the subscrrber While we believe the sources of our Informa tlon to be reltoble, we m no way represent or guarantee the accuracy thereof nor of the statements mude he'em Any action to be token by the subscnber should be bosed on hiS own mvestlgalton and Informotlon Janney Montgomery Scott, Inc, as a corporation, and Its officers or employees, may now have, or may later toke, pOSitions or trades In respect to any SeCurities mentioned In thiS or any future Issue, and such position moy be different from any views now or hereafter expressed m Ihls or any other Issue Janney Montgomery Scoll, Inc, which IS regiStered With the SEC as on Investment adVisor, may give adVice to Its Investment adVisory and athel customers Independently of any statements mode In Ihls or In any other Issue Further Informallan on any security mentioned herein IS available on request ——- —————-

-. TABELL'S MARKET LETTER ——– —— – 909 STATE ROAD, PRINCETON. NEW JERSEY 08540 DIVISION OF MEMBER NEW VORK STOCK eXCHANGE INC MEMBER AMERICAN STOCI( eXCHANGE November 14, 1975 . vt hVllQ99J-l'-asUgsy of .!his.letter..!h fac.!!hat;.ketadership has been shifting dramatically,and that this shift in teaaership coincided with the July nigh in the -market. For the period — December 24, 1974-July 9, 1975, the S & P 500 advanced from 66.87 to 94.80, then moved irregularly recovering by last Wednesday to 91.19. Inthe advancing phase of the market, no fewer than 12 industrial groups, as measured by S & P group indices, advanced 100 or more with the worst acting group scoring an 11 advance. From the July high through last week, the ten best-acting groups scored advances ranging from 11 to 23,and the worst performance was a 36 decline. What was Interesting, however, Is the fact that In many cases the best-acting groups in the December-July advance have tended to perform rather poorly subsequently and vice versa. Of the ten best- acting groups from December to July, only one enjoyed the same status in the July-November perlod,and five were in the bottom half of the list as far as performance was concerned. Likewise, of the ten best- acting groups In the most recent period, no fewer than six had been in the bottom half of the list perform- ance-wise In the first half of the year. As a matter of interest, the following table lists the 95 Industry groups under study followed by, to the left of the slash, Its performance rank for the December-july period, and to the right of the slash, the comparable performance rank from the july high through last Wednesday. Railroads 95/35 Foods-Canned Foods 77/22 Real Estate 5/91 Auto Parts 50/56 Foods-Dairy Prod. 70/ 9 Restaurants 9/16 Aerospace 25/70 Foods-Meat Pack. 54/32 Retail Stores-Department 20/23 Air Freight 18/63 Foods-Packaged Food 56/ 7 Retail Stores-Discount 44/11 Air Transport 40/37 Forest Products 31/55 Retail Stores-Food Chains 56/44 Aluminum 39/78 Gold Mining 91/94 Retail Stores-Mail Order 47/33 Atomic Energy 1-,,,AutomabHe . 17/87 Home Furnishings 41i!'l-0. Hos-pitalSupplies 51/18 Retail Stores-Variety 38/19 nL45Sho!;,s . 6/ . Auto Parts-Orig.Eq. 42/3 Hotel-Motel 3/15 Soaps 81/42 – Auto Trucks & Part 63/77 Lead & Zinc 33/36 Steel 60/54 Beverages-Brewers 27/93 Leisure Time 4/53 Sugar-Beet Refiners 84/14 Beverages-Distillers 88/41 Machine Tools 49/71 Textiles-Apparel Mfrs. 23/ 1 Beverages-Soft Drinks 22/29 Machinery (Agric) 94/ 5 Textiles-Synthetic Fib. 67/ 2 Bldg. Mat-Air Cond. 24/84 Machinery-Const-Mat!. HA 53/26 Textile Products 28/17 Bldg. Mat Cement 21 90 Machinery-Industrial 72/58 TlTe & Rubber Goods 48/12 Bldg.Mat-Heat.Plumbing 16/64 Machinery & Serv-Oil Well 75/83 Tobacco-Cigarettes Mfg. 90/34 Bldg. Mat-Roof-Wallbrd 34/76 Machinery-Specialty 11/67 Toys 8/40 Chemicals 52/30 Machinery-Steam Gen. 7/92 Truckers 37/ 8 Coal (Bltum) 14/89 Metal Fabricating 32/60 Vending Machines 30/73 Confectionery 35/24 Metals Miscellaneous 61/65 Real Est. Inv. Tr. 45/79 Conglomerates 12/50 Mobile Homes 41/85 Electric Power 71/20 Contalners-Mtl. & Gl. 93/13 Motion Pictures 2/74 Natural Gas-Distrlb. 79/59 Containers-Paper 66/28 Office Equipment 80/31 Natural Gas-Pipe Lines 74/69 Copper 87/75 Offshore Drilling 64/95 Telephone 89/27 Cosmetics 29/43 Oil-Crude Producers 76/82 Banks-N. Y. City 62/86 Drugs 85/62 Oil-Domestic Inte. 83/66 Banks-Outside N. Y. City 57/48 Electrical Equipment 36/46 Oil-IntI. Integrat. 69/38 Savings & Loan Assoc. 68/57 Electric-Electron. Maj. Cos. 26/52 Paper 55/ 6 Insurance-Life Electrical-Hhld.App. Electronics–' — – – – . . –.10/21 Pollution Control 19/72 – Publishing 1/88 Insurance-Multi-Line 13/25 -Insurance–Prop!Llab. 82/68 78/51 …. … 86/49 Finance Cos. 92/81 Radio-Telev. Brdcasters 15/61 Investment Cos. 65/47 Finance-Small Loan Co. 59/39 Railroad Equipment 43/80 Dow-jones Industrials (1200 p.m.) 850.76 S & P Compo (1200 p.m.) 90.89 Cumulative Index (11/13/75) 492.64 AWT/jb ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL No Iolemenl or expresSion of ClpiniOn or any other matter herein contained IS, Clr IS 10 be dee'Tled to be, directly or mdnec1ly, an offer or the SOllCllollon of on offer to buy or ,ell any security referred lQ or mentioned The matter IS presented merely for the conVef'lenC5 of the subscriber While we believe the sources of our Informa- tion to be rellCble, we In no way represent or guarantee the accuracy thereof nor of the statements mude herein Any action to be token by the subscriber should be based on hiS own Invesllgahon and information Janney Montgomery SCali, Inc, as a corporation, and Its officers or employees, may now have, or may laler lake, positions or trades In respect to any secuntles mentioned In thiS or any fulure ISSUtl, and such POSition may btl different from any views now or hereafter expressed In thiS or any olher Issue Janney Montgomery Scott, Inc, which IS registered With the SEC as an Investment adVisor, may give adVice to Its Investment adVisory and other C'ustomers Independently of any statements mode JI1 n))S or In any other Issue Further Information on any security mentioned herein IS available on request

TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON, NEW JERSEY 08S40 DIVISION OF MEMBER NEW YORI( STOCI( EXCHANGE, INC MEMBER AMERICAN STOCK eXCHANGe November 21, 1975 A basic raison d'etre for technical analysis is the fact that there are two distinct and separate inputs to a stock price. The first of these is available fundamental information, both of a factu- al and a forecast nature. The second is investor expectations, which are not homogenous and may vary …. -widely over tiri'e. Sfnc-ettwo';lldbe difficult, if not impossible;'to-poflive-sfOrs t'o'ascertaiiithe state' – of those expectations, the only recourse available is to study their expression in price action. Thus, the profession of technical analysis. No judgment is made by the technician as to whether self-evident expectations are correct or incorrect. What is interesting, however, is that they are often widely at variance with accepted fore- casts. Thus, for example, stock prices enjoyed one of the sharpest six-month rises in history in the first half of 1975 in the face of an ongoing recession with no bottom clearly in sight, and when, at mid- 1975, the recession's bottom became apparent, they began moving sideways. The purpose of today's exercise is to attempt to draw a few generalities as to the current state of investor expectations and the areas in which those expectations are finding focus. The following two lists of industry groups are based on intermediate-term relative strength comparisons covering, roughly. the past thirty weeks with more recent data given heavier weight. With- out gOing into details of computation, it is possible, simply, to say that the groups in the left-hand list, labeled stronger, have been acting better than the market and the groups in the right-hand list, some- what worse than the market. This contrasting action seems to shed light on investor thinking in a number of areas. Stronger Weaker Apparel Hotel-Motel Aluminum Gold Appliances Meat Packing Banks Life Insurance Autos Motion Pictures Bldg. Material Mobile Homes Chemicals Paper Bus. Machines Offshore Drilling 1…. ,…..Dept..Stp.!esS.h)jol.le2!si—- C'-0a'!I O!2iI;;.';Crude Producers Food Food Chains Synthetic Fibers Variety Stores Copper Drugs R. E. 1. f. Savings & Loan Grocers Utilities Finance Cos. Horne Furnish. Energy. Included in the left-hand list are a number of groups which, at first glance, appear to have absolutely nothing in common, Autos, Chemicals, Food Chains, Hotel-Mltel and Utilities, and, yet, they all share a common thread — the fact that in one way or another, they are beneficiaries of lower fuel prices. On the other hand, in the-list of groups that have been acting worse than the market, obviously such industries as Coal, Crude Oil Producers and Offshore Drilling would be affected detrimentally by widely-available lower-priced oil. This phenomenon is especially interesting since no one that we know of is, indeed, forecasting lower oil prices. Yet, such an expectation seems to be built into the marketplace. Consumer Spending. Forecasts as to outlook for consumer spending in 1976 vary wide- ly, and there are broad differences of opinion. The stock market, however, apparently suffers from no such dichotomy. Apparel, Appliances, Department Stores, Food, Grocers, Horne Furnishings, Shoes. Synthetic Flbers and Variety Stores are all areas of industry that would benefit from a sharp upsurge in consumer spending. Yet on the other hand, the market is currently telling us that one area in which it does not expect increased consumer spending is in the home building area with Building Material stocks and, concurrently, Mobile Homes, showing below-average action. Basic Industries. In contrast with the improving outlook for consumer goods, stock buyers apparently have some doubt about the capital goods outlook, as witness the weakness in Aluminum, Copper, -etc. – These problems, of course, may be -only ,temporary,since It is difflcul!,to.see how.a sus- . – tained consumer-spending surge could fail to spill over into the capital-goods area. Finance. The market is apparently still expressing some skepticism about companies essentially in the money bUSiness, whether due to New York City's financial troubles or whatever reason. As can be seen, Finance Companies, Life Insurance, Savings and Loans and Banks are conspicuous by their presence in the list of weaker groups. . High PiE Ratios. Skepticism apparently continues as regards stocks with relatively high price-earnings ratios. Such industries as Drugs and Business Machines are conspicuous by their presence in the weaker list. Note The above comments are based on technical factors. Further information on all companies is available on request. Dow-Jones Industrials (1200 p.m.) 840.29 S & P Camp. (1200 p.m.) 89.38 ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL Cumulative Index (!l/20/75) 487.23 AWT/jb No statement or expresSion of opmion Or any olher matter herein contained IS, or 15 to be deemed to be, directly Of indirectly, on offer or the SOllcltOllon of on offer to buy or sell any security referred 10 or mentioned The motter IS presented merely for the conver-Iencc of the subscriber While we believe the sources of our mforma tlon to be rehable, we m no way represent or guarantee Ihe accuracy thereof nor of the statement, mude herem Any actio to be lal-en by the sub;cber should be based on hu own mvestlgotlon ond ,nforma/lon Janney Montgomery Scott, Inc, as a corporation, and Its officers or employees, may now have, or may later take, positions or trades In respect to any seCUrllleS menl10ned In thiS or any future Issue, and such posillon may be different from ony Views now or hereafter expressed 10 thiS or any other Iss.ve Janney Montgomery Scolt, tnc , which IS registered wllh the SEC as on mvestment adVisor, may give adVice to lIS mvestment adVISOry and othel C'\Jslomers Independently of ony stalements mode In thIS or In ony other Issue further ,nformaHon on any secunly mentioned herein IS available on request

TABELL'S MARKET LETTER – 909 STATE ROAD. PRINCETON NEW JERSEY 08540 DIVISION OF MEMBER NEW YORI( STOel( EXCHANGe, INC MEMBER AMERICAN STOCK eXCHANGE We have spoken in this space in the past about the stock market's compulsive need for events, an event being defined as a plausible explanation of why the market did what it was probably going to do in the first place. We have observed such events over the years and have found that there are a number of criteria common to most of them. These criteria may be summarized as follows. 1) The event should be assured of continuing news coverage, at least on the financial pages, and better still, on the front pages, of the nation's press. 2) It should be something capable of evoking wide differences of opinion and susceptible of analysis which leads in diametrically opposite directions. 3) The event should be peripherally related to the world of finance, but 4) its relationship to the stock market should be tenuous, at best, and probably non-existent. Now, judged by the criteria above, it becomes readily apparent that New York City's financial troubles provide, perhaps, the best stock market event to come along, perhaps in de- cades. Those troubles are probably even superior to the old excuses of changes in interest rates or the rate of inflation which we have been accustomed, over the past few years, to see used as excuses for the market's move in one direction or another. It is, thus, unsurprising to see the market as it did at the end of this week, move up in response to the New York State tax pack- 1ageandthe,prQspect…oLashorJ'-JermsoJ\ltiontjLtheC.ityscrisJ' Now, we, for one, agree that the market is probably headed higher over the intermediate term. However, it is not, in our view, headed higher due to whatever band-aid, federal or otherwise, may be applied to the festering sore of New York City's municipal finances. It is, rather, headed higher for a number of reasons relating more directly to the supply-demand forces which actually move prices. To begin with, the best available evidence now suggests that the trading range in which the market held between late July and early November constitutes an accumulation base for, at least, an attack on the summer high. Secondarily, at Thanksgiving, we are approaching that period when the market has its absolutely strongest seasonal tendency to move ahead — the time of the familiar year-end rally which, entirely conceivably, may have begun with last Friday's closing low of 840.76. With this prospect in view, however, a number of phenomena, troubling to the mar- ket analyst, must be kept in mind. Included among them is the occurrence of an intermediate-term market reaction last summer, a phenomenon which has occurred in the past toward the end of bull markets in terms of amplitude, if not in terms of time. Another disturbing factor is the fact that the market is now approaching the top of the cyclical trading range which has tended to contain it ever since the mid-1960's. We confess to some doubt as to whether the bull market, apparently now in its mature stage, possesses sufficient internal dynamics to mount a serious attack On the formidable bastion which apparentlyexists around the 900-950,level. It is these factors, we think, plus other indications of technical health or sickness which may develop throughout December and early 1976, which will be important in trying to forecast the course of the stock market, more important than the shifting vagaries of the solution or non-solution of New York's problems. Dow-Jones Industrials (1200 p.m.) 858.00 S & P Compo (1200 p.m.) 90.93 Cumulative Index (11/26/75) 492.31 AWT/jb ANTHONY W. TABELL DELAFIELD, HARVEY, TAB ELL No statement or expresSion of opinion or any other moiler herein contolned IS, or IS to be deemed to be, directly or indirectly, on offer or Ihe sol\cllol10n of on offer to buy or sell any security referred to or mentioned The matter IS presented merely for the converlence of Ihe subscriber While 'lYt') believe the Ources of our mforme lion to be relloble, we In no way represent or guarantee the accuracy thereof nor of the statements mude herein Any actIon to be token by the subSCriber should be based on hIS own investIgatIon and informatIon Janney Montgomery Seoll, Inc, as a corporatIon, and Its offIcers or employees, may now hove, or may later tae, posltlons or trades In respect to any Secunhes mentIoned In thIS or any future Issue, and such poslilan may be dIfferent from any VIews now or hereafter expressed In thIS or ony other Issue Janney Montgomery Scali, Inc, whIch IS registered WIth the SEC as an ITlvestment adVIsor, may gIve adVice to ItS Investment adVISOry and olhel customers Independently at any stalements mode In thiS or In ony other Issue Further informatIon on ony secvrlty mentIoned hereIn IS ovmlable on request

TABELL'S MARKET LETTER 909 STATE ROAD. PRINCETON, NEW JERSEY 08540 DIYISION OF MEMBER NEW VORK STOCK EXCHANGE. INC MEMBER AMERICAN STOCK EXCHANGE – December 5, 1975 –.;.- – – —— – . –'P- –4 ….,… .-..,…—–. — —'7.,..4 A continuing source of comfort to those who must, of necessity, issue short- term stock market forecasts is the knowledge that Babe Ruth also struck out a lot. We had, last week, in a forecast couched in terms of the Dow, suggested that equity markets might be enter- ing a period of moderately firmer prices. Last week's market action, in which the Dow gave up SOme 35 points over the course of a three-day decline through Wednesday, effectively quashed that particular prospect for the time being as the major averages moved decisively below their lows of last October. The problem in retrospect lay in the dissimilarity of the recent action of the Dow to that of the more broadly-ba sed indices. Last summer's accumulation range on the DnA did, indeed, suggest somewhat higher prices. By contrast, the broader-based indices such as the S & P Industrials and S & P Composite, both of which had led the Dow on the upside on the breakout in mid-September, had, at their November peaks, moved to their upside objectives and had begun to move laterally. Further confirmation of this sort of divergence was provided at the end of last week when, as the Dow moved up through its mid-November high, none of the other averages gave even a semblance of participating in the move, this failure taking place not only in the broad-based indices but also the Dow Transportation and Utility Averages. There have, of course, been numerous periods in the past when the Dow has been able decisively to outperform the general market, and it was our feeling that such might once more be the case. It now 1-.- becom es,apparentthat.the ,broad,,-ba s ed.ind iceswerein ,Jact ,telJi!!gthe.true.Jor.y, ,…,..–, What must be noted at this stage is the fact that last week's decline, in and of itself, constitutes something short of the end of the world. If we are to accept the broad-based indices as accurate market harbingers, as, indeed, they have been since last summer, the downside objective for the S & P Industrials is 94 Versus the present level of 98 and for the 500 Stock Composite, it is 85 versus a current figure of under 88. An equivalent level on the Dow would take that index to somewhere around the 805-800 area. Thus, the immediate prospect is, in our view, not all that disheartening. It is still worthwhile, moreover, to recall the seasonal pattern of the year-end rally. We had expressed the hope in the past couple of weeks that such a rally might, In fact, have begun from the late November low around 840 on the Dow. This, quite clearly, will not now be the case, but probability lies in favor of its commencement at whatever low 1S reached on the current downswing. It is at this pOint that the crucial decision will have to be made. The most valuable indication of technical deterioration has, in the past, not been a series of sharp market declines but one of tepid railies. Quite obviously, In retrospect, the late November strength in the Dow must be placed in this category. We continue to thmk that the present weakness will be halted at the downside objectives mentioned above, where, coincidentally, there-exists .mod erately strong support.. We would, likewise ,.expect that,.from that point, there w111 be a rally of some nature If such a rally fails to display strength in terms of breadth, volume and confirmation by a broad range of indices, prospects for the first half of 1976, at least, might become somewhat glum. If this is going to be the case, however, we would prefer to allow the market to tell its own story rather than to be swayed unreasonably by pamc engendered in the sort of market weakness seen last week. Dow-Jones Industrials (1200 p.m.) 827.14 S&P Compo (1200 p.m.) 87.76 Cumulative Index (12/4/75) 474.20 AWT/jb ANTHONY W. TAB ELL DELAFIELD, HARVEY, TABELL No totement or expression of opinion or any other moiler herem contained IS, or IS 10 be deemed to be, dHeclly or mdlre(1ly, on offer or the solicltotlon of on offer to buy or sell anr. security referred to or mentioned lhe molter IS presented merely for the conver'lenct of Ihe subscriber WI-nle -Ne believe Ihe sources of ovr mformo lion to be rei lob e, we In no way represenl or guaranlee the accuracy thereof nor of the statements mude herein Any o(1lon to be loken by the sub.cflber should be based on hiS own inVestigation ond mforma/lon Jonney Montgomery Seal!, Inc, as a corporation, and lis officers or employees. may now have, or moy laler take. positions or trades In respect to any secufliles mentioned In thiS or any future Issue, ol'ld such paslhan may be different from any views now or hereafter expressed 10 thu or any other ISsue Jonl'ley Montgomery Scott, Inc;, which IS registered With the SEC as on 10yestment adVisor, may give adVice to liS IOvestmeol adVISOry ol'ld other CUtomers Independently of any statements made In thiS or 10 ooy other Issue Further informatIOn 00 al'ly securlly mentioned herem IS available on request