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

Chicago, IL (PRWEB) October 25, 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, but not as low as the futures traders expected, touched support near the STOP-LOSS PRICE LEVELS for the DJIA, SPX, and NDX, rallied to fill the gap at the open, fell to re-test support, and managed to climb into positive territory at the close, although the NDX finished in the red. Thursday's mixed price action left the DIA, SPY, and QQQ models in neutral 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 been violated. After Thursday's action, the daily candlesticks also show a hammer for the DJIA and SPX, and a gravestone for the NDX above the 50 day MA level. These candlestick indicators require a higher trade on Friday to be confirmed as trend reversal. With prices continuing to fall in after-hours and futures trade, this does not seem likely at this time. The price decline from last Wednesday's high price to Thursday's closing price in the QQQ represents a 50% retracement, while for the SPX, the move from last Wednesday's high price to Wednesday's closing price represents a 38% retracement of the October price rally. While this price action qualifies for the second wave correction in a five wave up trend, Wednesday's price action leaves this scenario in doubt.

As it stands now, the overall up trend is still intact. Prices failed to hold several support levels on Wednesday and the markets appear to have denied Monday and Tuesday's price action. The technical damage done on Wednesday has left the DIA, SPY, and QQQ with new levels of overhead resistance and left the Index models resting on support just above their respective STOP-LOSS LEVELS. The markets opened lower on Thursday, but the Index support at the STOP-LOSS LEVELS held on two attempts and on a closing basis. So, the markets are in position to determine if this critical support level will hold on Friday and thereby signal the completion the October correction. If Index prices will fall through this support level, further price declines into the gaps on the daily charts, and possibly to their respective LONG TERM TREND LEVELS is likely.    

Resistance for the DIA, SPY, and the QQQ starts at the LONG TERM TREND LEVELS, in the down-gap on the hour charts, the SHORT-TERM TREND LEVELS, at Tuesday's high price and then the 52-week high price. Resistance for the Indexes is located at the SHORT-TERM TREND LEVELS, Tuesday's high, followed by last Thursday's high price and the 52-week high price. Support for the DIA, SPY, and the QQQ is located at Wednesday and Thursday's low with more solid support at the high of the gap left on daily charts which is approximately 1 1/2% below Wednesday's low price. For the Indexes, support lies at Wednesday and Thursday's low, followed by their respective 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