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

Chicago, IL (PRWEB) October 22, 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 steady and proceeded to rally toward resistance at last Thursday's low price, sagged back to support near last Friday's low, and then managed to grind higher for the rest of the session to close near the high of the day. The DIA, SPY, and QQQ continued to rally in after-hours trading pushing prices through the first level of resistance and above the SHORT-TERM TREND LEVELS for Tuesday. Monday's move higher lends confirmation to the support at last Friday's low price which is also the 52-week high price posted in mid-September and moved the daily DIA, SPY, and QQQ models back to 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 as the October up-trend line has now been violated. While the daily candlesticks show a possible trend reversal, the weekly candlestick and close-only charts show a return to critical support at the mid-September high price. The price decline from Wednesday's high price to Friday's low price represents a 38% retracement of the October price rally and qualifies for the second wave correction in a five wave up trend.

As it stands now, the overall up trend is still intact. Prices rallied away from support at Friday's low price and the DIA, SPY, and QQQ have moved back above the SHORT-TERM TREND LEVELS on a closing basis, so now the models have moved back to long positions. If support gives way in the indexes at Monday's low price and SHORT-TERM TREND LEVELS, market prices could decline another 1 to 2% to STOP-LOSS LEVELS. A strong open on Tuesday could lead to new 52-week highs, however a correction of Monday's price rally is not out of the question.

Resistance for the DIA, SPY, QQQ is now located at last Wednesday's low price, followed by Thursday's high price and the 52-week high price. Resistance for the Indexes is located at last Wednesdays low price, followed by last Thursday's high price and the 52-week high price. Support for the DIA, SPY, QQQ is located at SHORT-TERM TREND LEVELS, Monday's low price and then again at the LONG TERM TREND LEVELS. For the indexes, support lies at Mondays 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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