I found this sensor or what ever it is on the bell housing of my jeep has a red and yellow wire on it and the wires are done ..I'm assuming this is the torque converter switch ...is this right if not what the he'll is it

 

It your Cps cranks position sensor. Works with the computer to tell the distribution cap to fire

 

That's definitely the CPS. Your solenoids are in the pan, under the filter, bolted to the valve body.