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

Chicago, IL (PRWEB) October 23, 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 NDX/QQQ opened higher, sagged with the SPX/SPY and DJIA/DIA, rallied along with the SPX/SPY through midday before closing near mid-range for the session, while the DJIA/DIA and SPY finished the session lower. 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, while Tuesday's mixed market action left prices above the first level of resistance at last Thursday's low price and left the DIA, SPY, and QQQ models with long positions. The candlesticks on the daily charts still reflect a rejection of the downside move that 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 still show a possible trend reversal, the weekly candlestick and close-only charts show a return and possible bounce off of 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 continued to move away from support at last Friday's low price, however the QQQ is above the SHORT-TERM TREND LEVELS, while the DIA and SPY slipped below the SHORT-TERM TREND LEVELS. This mixed picture reflects the uneasiness of the short-term market players, however with the DJIA and SPX both above their respective SHORT-TERM TREND LEVELS, prices should be able to proceed higher. 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. Prices did not open strongly on Tuesday but the NDX/QQQ and SPX still managed to grind higher, so Wednesday should be the day that the markets confirm, or deny Monday's price action. 

Resistance for the QQQ is now located at last Thursday's high and the 52-week high price. The same is true for the DIA and SPY except that resistance starts at their respective SHORT-TERM TREND LEVELS. Resistance for the indexes is located at Tuesday's high, followed by last Thursday's high price and the 52-week high price. Support for the QQQ is located at the SHORT-TERM TREND LEVEL, Monday's low price and then again at the LONG TERM TREND LEVEL. For the DIA and SPY, support starts at Tuesday's low, followed by Monday's low, and then the LONG TERM TREND LEVELS . For the indexes, support lies at Tuesdays low, Monday's 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