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

Chicago, IL (PRWEB) October 29, 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 higher, rallied to resistance near the down-gap on hourly charts from last Wednesday, and sagged back to support near the SHORT-TERM TREND LEVELS for both the DIA, SPY, QQQ and the Indexes. Monday's price action was the first rally attempt following Friday's strong price action late in the session and left the DIA, SPY, and QQQ models with neutral positions. Prices behaved as one would expect prices to act last Friday as they fell into the price gap on the daily charts and market players decided to step in and buy at a point that left some out of the last market rally. After Friday's price action, the daily candlesticks showed a hammer for the DJIA and SPX, and NDX at, or just above the 50 day MA level and these candlestick indicators received the required higher trade on Monday to be confirmed as trend reversal indicators. A successful move above Monday's high price would add further confirmation of the bottom posted at mid-session on Friday. A gap higher open on Tuesday would negate the downside gap left from last week, however there will be selling left over to provide resistance in a price range from Monday's high to last Tuesday's high price, so it may take more than one trading session to establish a higher trend. Prices appeared to have found strong support at the linear trend line on daily charts, the 50 day MA level, the price gap from October 3, and the 61.8% retracement level. The price bounce off of this support zone has left the DJIA, SPX, and NDX with closing prices once again resting on their respective STOP-LOSS PRICES.    

As it stands now, the overall up trend is still intact. Prices finally seem to have found support and positive price action on Monday has lent the first level of confirmation to a new price advance. A drop in prices will take the Indexes through the STOP-LOSS PRICES and move the models to neutral positions. Even with the positive session on Monday, a close above the SHORT-TERM TREND LEVELS for the DIA, SPY, and QQQ is required to begin to move the models back to long positions.

Resistance for the DIA, SPY, and the QQQ starts in a range from the SHORT-TERM TREND LEVELS to Monday's high price and then again in the down-gap on the hourly charts, followed by last Tuesday's high price and then the 52-week high price. Resistance for the Indexes is located in a range from the SHORT-TERM TREND LEVELS to Monday's high price, last Tuesday's high, followed by the 52-week high price. Support for the DIA, SPY, and the QQQ is located at Monday's low and Friday's low price. For the Indexes, support lies at Monday's low price, the STOP-LOSS PRICES, followed by Friday's low, and then their respective 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