TE Index

The TE Index is made up of a combination of four important Indicators that we have researched to have a significant impact on the future direction of the major stock indices. These four Indicators are:

1. Primary Trend

2. Investor Sentiment

3. Interest Rates, and

4. Valuation

Combined, these four Indicators produce our daily TE Index. When the TE Index is below zero pts it is signaling higher stock prices over the short term (1 to 15 days). When the TE Index is between zero and 150 pts it is signaling that the market is expected to trade within a confined range over the short term. Finally, when the TE Index is over 150 pts we would expect the major stock indices to decline over the short term.

Date	S&P 500	TE Index
Dec 31/07	1468.29	72.32