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Technical Market Action Weakness in the distilling issues at the opening of Thursday's market caused irregularity prices in the general list. The rails were only fractionally lower. The industrials regained a portion of the decline but closed 39 cents lower. Still visualize the possibility that the market is in the process of forming an intermediate distribution area. However, the pattern does not, as yet, appear to be complete. Would expect further backing and filling in a comparatively restricted area, ;s f1cr as the averages are concerned., with special situations and groups highlighted. Would expect selective strength to be followed by further additions to technically unfavorable groups which now include the airlines, liquors, and a number of the tobacco issues. These groups appear to be in an intermediate downtrend. I Believe the rails should be active participants on any further selective strength over the nearer Individual issues in this group have not reached their intermediate price objectives and Thursday's firmness in the face of general market weakness is encouraging. '4.In the rail group, particularly like AIleghany Corp fd. The issue was originally recommended at 57 and recently ranched a high of 69 1 4. Thursday's close was Technical action continues bullish and believe the stock will sell higher over the nearer term. Continue to advise profit taking on recommended issues ns intermediate objective levels arc reached. February 7, 1946 EDMUND W. TABELL SHIELDS & CC'I.PIINY Closing Dow-Jones Industrials Dow-Jones Rails 205.09 67. The opinions expressed in this letter are the personal interpretation of charts by Edmund W. Tabell and are not presented the opinions of Shields & Company.