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Technical Market Action The market broke sharplY on Friday to reach a low of 175.46 on the industrials and 46.00 on the rails. Volume increased, particularly in the fourth hour when the tape was several minutes late. Total volume for the day was 1,290,000 shares. The sell-off in the industrial average was accentuated by a 7 1/4 point drop in Allied Chemical which declared an extra dividend but failed to split the stock as ruQored. Friday's sell-off appeared to have soe of the characteristics of a selling climax. While the comeback fro the lows was not particularly impressive, several groups that have hitherto been weak seemed to meet good support. This was particularly true in the rails, utilities and some of the merchandising issues. While the decline was sharp, the industrials held in the 177-175 eupport range mentioned in our preVious letter. Our recent comments on indiVidual issues have centered on issues that have been acting better than the market. These stocks, even at present prices, are conSiderably above the originally recoended prices and the lows of the year and are not targets for tax selling. It might be appropriate at the moment to draw attention to a number of issues that have been heavily depressed by tax selling but appear to be at or near their downside objectives as measured by the broad distribution areas of early 1946. As tax selling abates later in thA month these issues could have a good technical rebound in the process of building up their base patterns. The list follows L' Alle gheny Ludlum American Cyanamid Atlas Corporation Consolidated Vultee Eastern Air Lines Evans Products Fansteel General Railway Signal Pepsi-Cola Seaboard Airline Twentieth Century FOX 1946 High 61 1/8 63 3/4 34 3/8 33 5/8 33 3/8 33 3/4 42 JJ3 40 1/2 37 3/4 63 7/8 t947 ' liigh 48 1/2 54 1/2 26 1/2 17 7/8 24 1/4 24 1/2 22 3/4 31 1/2 34 LIs 24 5/8 38 3/4 1947 b!2!I…. 27 3/4 39 21 5/8 101/2 16 18 12 19 22 11 1/4 21 5/8 Last Sale 28 39 1/2 22 ' 12 161/4 18 5/S 12 21 22 1/2 13 1/2 22 While these issues m be SUbJect to some further tax selling as the month goes on, would take advantage of any weakness to add to the list. December 5, 1947 ElXIIUND W. TABELL Closings Dow-Jones Industrials Dow-Jones Rails Dow-Jones 65-Stock SHIELDS &, COMPANY 176.10 46.28 61.92 The opinionl flxpreued 1n this letter are the personal interpretation of cham by Mr. Edmund W. Tabelland IIIr. not presented as the opinions of Shield. & Company.