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Technical Market Action After early firmness, Monday' s market worked lower in the final hour of trading and closed 1.16 points off on the industrials and 1.09 on the rail average. Volume totalled 1,440,000 shares. It wins the fifth successive trading day on the downside. From a technical viewpoint, there are two possible developments at this stage of the market. The first is a continuation of the decline to the 197-195 area. At the moment, the tops formed by the industrial average indicate no greater decline than the above mentioned figure. This would be a correction of approximately 5 Which has been just about the size of most corrective reactions in recent months. The second possibility is a halting of the decline around the 201-200 area, followed by a rally and a broadening of the top. Am inclined to favor this latter possibility as it-is in line with the thought that the market may be in the process of forming an intermediate distributional area. So far, the top area formed indicates no more than 197-195. More backing and filling would be required to materially broaden the top. From the foregoing it would seem that the market could be bought for c trading turn between approximately present levels and 197. However, as far as the intermediate term trend is concerned, would exercise extreme caution and employ only a portion of available funds at this stage of the market. Recommended issues should be retained but liquidated on strength. EDMUND W. TABELL February 11, 1946 SHIELDS & COMPJ.NY Dow-Jones Industrials 201.14 Dow-Jones Rails 65.11 The opinions pressed In this letter are the personal interpretation of charts by Edmund W. Tabell end ere not presented .s the opinions of Shields & Company.