Stand-Off

Jagged descending lines on some charts tended to level off, or even rise, last week. Barren's business index for the second week in succession stood at 53.7% of normal. Steel production was virtually static at 30% of capacity; lumber--up from 166,926,000 board feet fortnight ago to 179,322,000 last week; automobiles -- down from 53,385 units fortnight ago to 47,419.

For the first time since mid-March The Annalist index of wholesale commodity prices moved upward. High-grade bonds continued a steady improvement begun six weeks ago. The stock market after a 1 1/2 month long irregular rise notable even in the depressed railroad and public utilities, stood still--but odd-lot traders, who have been buying against the trend, suddenly switched to selling.

Meanwhile, followers of the Dow Theory watched their charts to see whether the Dow-Jones industrial average would go above its April 16 high of 121 thus--in theorists' jargon--confirming the action of the railroad average (which passed its April high) and indicating an intermediate upswing. Brokerage boardrooms fluttered with rumors that Robert Rhea of Colorado Springs, best-known interpreter of The Theory, had said upward breaking of 121 would definitely mark the end of the bear market. This was denied by High Priest Rhea. At any rate, industrials closed the week still below 121. And there was no theory or index that said business had definitely landed on a shelf, or reached bottom.

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