Pinnacle Resources LP Reports its Technical & Quantitative Model Results for the DIA, SPY, QQQ

Chicago, IL (PRWEB) October 18, 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 opened lower based largely on weakness in the DJIA/DIA, held support near Wednesday's low and SHORT-TERM TREND LEVELS in the SPX/SPY and NDX/QQQ, managed to rally at mid-session, and closed near the highs of the day, while the DJIA/DIA closed slightly lower on moderate volume. The ability of the SPX/SPY and NDX/QQQ to bounce off of support levels at the SHORT-TERM TREND LEVELS on Thursday leaves the short-term and intermediate term models with long positions. The candlesticks on the daily charts still reflect a rejection of the downside move the prices made during the last two weeks of September, but also reflect the lack of conviction amongst traders. Further, the continued rally confirms the case for the island reversal pattern on the daily SPX/SPY and DJIA/DIA charts. While the daily candlesticks show a possible trend reversal, the daily close-only charts show a return toward support near the 52-week high closing price posted in mid-September.

As it stands now, the overall up trend is still intact. We have maintained our short-term near the money put option positions due to the lack of conviction in the market, even though prices closed near 52-week highs. The markets now appear to be in the process of moving higher in the third wave of a five wave up trend that could take prices sharply higher as long as prices can remain above their respective SHORT-TERM TREND LEVELS on a closing basis from this point forward. As prices move further away from the island gap below the market, the possibility of another unfilled gap higher becomes more likely. The market appears to be waiting for a catalyst to move prices on heavy volume and that catalyst may come this week. We are still awaiting confirmation of that direction.

Resistance for the DIA, SPY, QQQ and the Indexes is still located at Wednesdays high price, followed by more solid resistance 2 to 3% above Thursdays closing prices. Support for the DIA, SPY, QQQ is located at the SHORT-TERM TREND LEVELS, Wednesdays low price near the STOP-LOSS PRICE, and then again at the LONG TERM TREND LEVELS. For the indexes, support lies at Wednesdays low price, Tuesdays low price, followed by their respective SHORT-TERM TREND, 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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