Pinnacle Resources LP (www.pinnacle-resources.net) Issues Technical & Quantitative Market Update for DIA, SPY, & QQQ

Chicago, IL (PRWEB) October 13, 2003 -- Pinnacle Resources LP reports its technical & quantitative model results for the DJIA (AMEX: DIA), S & P 500 (AMEX: SPY), NASDAQ-100 (AMEX: QQQ).

The markets gapped higher at the open, paused above the previous 52-week high price, rallied further, reversed down to key support levels and then tried to rally at the close of the session. Traders found a catalyst to spark the rally, but once again the market failed to hold on to sizable gains and settled near the previous 52-week high price in the SPX/SPY, DJIA/DIA, and the NDX/QQQ leaving the short-term and intermediate term models with increased long positions. The candlesticks on the hourly and daily charts appear to reflect a rejection of the downside move during the last two weeks of September. The charts also reflect a lack of conviction by market players toward this rally. Further, a case can still be made for an island reversal pattern on the daily SPX/SPY and DJIA/DIA charts lending further support to the price rally.

As it stands now, the overall up trend is still intact, however Thursdays sharp price reversal has left the market with another level of resistance. We have maintained our short-term near the money put option position due to the lack of conviction in the market. The possibility of a double top pattern does exist on the daily close-only charts, however the probability is low at this point in time, especially if prices remain above the lows of the gaps on the hourly charts. The markets may be in the process of moving higher in the third wave of a five wave up trend that could take prices sharply higher if the previous 52-week high price can be exceeded on a closing basis from this point forward.

Resistance for the DIA, SPY, QQQ and the Indexes is now located at the previous 52-week high closing price and then at Thursdays high price. Support for the DIA, SPY, QQQ is located in a zone from Thursdays low price near SHORT-TERM TREND LEVELS and then again at the LONG TERM TREND LEVELS. For the indexes, support lies at Thursdays low price, followed by their respective SHORT-TERM, STOP-LOSS, and LONG TERM TREND LEVELS.

The firms proprietary quantitative and technical intermediate term trading model continues to generate a long position for these indexes based on their recent price patterns. The firms proprietary quantitative trading model generates a long position when it detects a positive trend in the historical price data series. While the model remains long, the possibility of a trend reversal is not out of the question. For more details on this and other positions, visit the market indices and models sections of the firms website located at www.pinnacle-resources.net.

ABOUT PINNACLE RESOURCES LP

Pinnacle Resources LP is an independent equity and derivative securities research and trading firm that distributes daily and weekly market research reports. The strategy and methodology behind these reports reflects a consistent, concise, and disciplined approach to investment and trading analysis.

Investors should be advised that no responsibility is assumed for the use of this material and no express or implied warranties or guarantees are made. The firm does not receive compensation from individuals or firms other than those that subscribe to its services. Facts, opinions and advice are current and are subject to change without notice. Nothing contained herein shall be construed as an offer to buy/sell any commodity, security, option or futures contract. The officers, employees, or managed accounts of Pinnacle Resources LP may have positions in the contracts or securities mentioned herein.

Pinnacle Resources LP
Chicago, IL
www.pinnacle-resources.net
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