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TABELL'S MARKET LETTER 35 WALL STREET. NEW YORK 5, N. Y. DIgby 4-4141 The good overnight news on U. S. Steel failed to arouse the market from its lethary and Wednesday's session was a great disappointment to many of those bullishly inclined. However, when emotions are forgotten and the graphs of the averages and various marJet leaders observed, one must arrive at the conclusion th2.t nothing has as yet been refinitely decided as to the direction of the next upward move. I am listing below the techical objectives of the averages and of various market leaders. Included in the compilation are the trading ranges in uhich each individual issue has held since late November and the objectives on the upside or downside, depending in which direction the penetration of the rLlge occurs. Those marked with an asterisk have already penetrated the trading range on the upside. It would seem from this indication that the outlook favors those constructively inclined. Out of the twenty-six issues listed eight have penetrated 0'. the upside and none have penetrated on the downside although several, notably in the oil and railroad group, are quite close to a downside penetration. In additio it might be said that the Dow-Jones Industrial average has already penetrated on 'le upside because it has broken out of the long 172-178 range in which it held from late November until early JA.nuary. To constitute a breakout the penetration must be a full point above or below the approximate trading range figures given in the list below. Objective Objective Trading Range Upside Downside Dow-Jones Incustrials Dow-Jones Rails American Can American Smelting American Rolling Atchison, Toeka Mills & S.F. Celanese Celotex Deere & Co. Douglas Aircraft DuPont Electric Auto Lite Electric Power &Light Goodrich Illinois Central Jones & Laughlin Kansas City Southern Missouri-K nas-Texas, pfd Montgomery. W8rd Plymouth Oil Schenley Shell Union Oil Southern Pacific Standard Oil of N.J. …. u. S. Stee1 Youngstown Sheet & Tube 182t-178 54!!- 52 82-78 56-52 26-24 103-99 32-29 27-24 36-32 54-47 183-167 43-40 23-19 61-56 31-28 33-30 42-36 25-21 59-52 47-37 30'-26 40-36 51-47 74-71 72-69 74-69 189 57-5Bt 89-95 60-62 32 llEl-ll8 39 33 41 60 194-196 48-50 28 65-68 37-39 37-39 '5 '. 29-31 73 55 38-40 48 57-59 84 77-81 78-80 17t 50 97-926-24 20 46 35 25 28 31 16 47 35 24-22 34 44 66 These objectives, toget.o3r .with those for the averages are obviously for a shorter term move. This list is an up to date revision of our lit of January 7, 1949. Jnuary 26, 1949 EDMUND W. TABELL WALSTON, HOFFMAN & GOODWIN This memorandum have an Iltterest In Is not tome to or be all construed as lift of the securities offer or IOIIc1tetlon of mentioned herein. The offen to buy or sell eny securities. From foreQoln9 material hal been prepared by tTsma. . to a tim. Wellton, Hoffman I Goodwin mJ matter of Information only. It 1. bas upon Information believed tenabl. but not necessarily complete, I, not Quaranteed as accurate or final, and Is not Intended to foreclose Independent Inquiry.