OUTLOOK

"Bullish on the S&P 500"

3/6/2007

We believe the S&P 500 will rally to 1425 or more from its close of 1374.12 on 3/5/07.  We believe this rally will occur within 8 weeks.

Our S&P 500 system is indicating extremes in negative sentiment and oversold conditions.  We see these conditions unwinding and adding fuel to a rebound rally.  As of 3/6/07, we have entered a long position in SPY at 138.85.

Mark Yuan, CFA