Three Down, One to Go

The stockmarket was in an interesting condition again. For the fourth time since 1946's big drop, a bull market was struggling to be born. Last week, the frequency and violence of labor pains were encouraging, notably to the Dow theorists.

The Dow-Jones railroad average hit 55.30, its highest close since August 1946. In rising 1.34 points in a week, the rails had "penetrated" (passed) the high mark (54.17) of their highest previous rally. To Dow theorists, this was highly significant. If the industrial average should also break through its previous high mark (187.66), it would be statistical proof that a bull...

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