The following method may be applied by long-term traders who have decided to integrate our daily Market Outlook into their arsenal of predictive tools. This method will suit those traders who wish to make conservative trades on the major U.S. indexes and index derivatives.

In the "Market Stage" section of each of our daily Market Commentaries, we state our long-term outlook for the major indexes.

How to use "Market Stage":

• The prevailing "Market Stage" can be categorized by the following clearly defined descriptors: "Uptrend", "Resistance Corridor", "Downtrend", and "Support Corridor";
   

• If our analysts find indications that the market is in a long-term uptrend (defined as a general market trend that usually persists for several months) and anticipate that the market will continue to move higher, they will state this in the Market Stage" section of the commentaries. If there are indications that the market might soon reverse to the downside, you would find the terms "Resistance Corridor" or "Downtrend" in the Market Stage. To stay in tune with the market, check our Market Stage section daily to see if any changes have occurred;
   

• Traders who wish to short the market can profit from our "downtrend" indications. However, this method is not suggested for highly conservative traders;
   

• When you see the terms "Resistance Corridor" or "Support Corridor" being used in the Market Stage section, this implies that our analysts expect the market to reverse direction in the near future. For long-term conservative traders, it would be best to remain in a cash position for the time being.

Recommendations:

• In order to see how our analysts qualify the market's prevailing long-term status, consult our daily Market Outlook;
   

• Never rely exclusively on the long-term predictions provided in our daily Market Commentaries. Furthermore, never base your trading decisions entirely on our commentaries. We recommend using a combination of market analysis tools and approaches, our commentaries being just one of several.

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