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Technical Market Action The market continued the ro.1ly at a ;llghtJy reduced pace on Thllrsduy. Tho clos vms near the; highs of we day. The industrials closed at l74.,)6,llp 2.01 on the day', while the ruils closed 6f, hiGher at 48.68. From the September 19t.h 10,1 of 164.09 to Thursday's high of 175.45, t.he mnrkct '11'-8 rDlJi,)d eleven poL'lts. Percento.ecl1ise, tlrLs il3 th best ,'ally 'he industrial ,,Grage has h.G since April of year. T8chnicnll;, the murkct c.ppcf..rs to lUl.ve reactwd its low at l-.st Thurs- day's 1011 of 164.09. 'As pointed Llut in this j.etlE'l', tl1e selling since tile high volume dac' of 3,620,000 shares on SeptemlJer 4th V;c.s seemingly much ,maker than the buyinG. This Via; evidenced by tho fact thd i'roJll the ll'id-August top of approxima.tely 205, the markc t deClined, i n fourteen trc;.ciing to a low of 17/. on Septembpr 4th. This decltne molmtcd to 31 points or 15. In the next three weeks, regardlese 01' the heavy volume fl..'lC general pessimism, the market declined only ten polnts'from the 17/. 10'01 or D l03J then 6. actIon startin.g from 4th ,tae of t base pattern. A of all technical of individual ism8s show, thet of those with clc(!r cut about t.l ill''1'' their dOf'nside objectives, e.nother 14 arc Iithin a fe\, points of tne.l., ob,iective ;;hile t.he remaining 25 still shm sorne\;hat lower prl.cGs. Past expe-iellCL ha.'3 ShOhTI ..tions to be npproxLLUtely 70 correct. N')rml'l t.(-clmical ,.etlon ;'10111d cc.l foJ' retrac(,ment of' one-third to blo-thirds of the dccJinC'. Dcpcnding on I1hehcr the Mey top of 213 or the; August top of 205 ill uSbd, t!1i8 would call fcr , r1'11)' to somollh'3l' betllf'en 1'78 end 196. Obviously, it may G,k1 some time before T,'leRc objectives are re3.ched. Th, idec.l pattern \lOu1d be a rllly to thE. 178-180 crua follm-led by .C ti.on to the 174- 172 area – followed by a to l.rnild up D. futhcr base pattern. In any even t, the m1lricet nov; appears to be r. purchas,.. on X'cci,j.Ol).s. Of the nlneoy-nin8 buying ran,-;es lbtecl OVEr the past weeKS, cightysix reached the buying area. Of these ej ghty-p.l..c, only tw,.,'' recoted moru than 10 below the lOVier limit of th buying range. September 26, 1946 EDl1UND \!. TAEr..LL SHIELDS & CO;PANY Closing ….. DOVi-Jones In&lstrials DO'i'I-Jones Rails Dow-Jones 65-St.ock 174.96 48.68 62.83 The opinions e ..prolSed in this letter are the personal interpretation of chem by Mr. Edmund W. Taboll end are not presented as tho .opinions of Shields & Company.