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

Chicago, IL (PRWEB) October 31, 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 to lower on Wednesday, sagged in a tight range, attempted to rally around mid-session, and managed to close with small gains in the DJIA and SPX, and fractional loses in the NDX. Wednesday's price consolidation on solid volume moved the DIA, SPY, and QQQ models to new long positions. After last Friday's price action, the daily candlesticks showed a hammer for the DJIA, 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 has added further confirmation of the bottom posted at mid-session on Friday. The gap higher open on Tuesday has negated the downside gap left from last week, however there is still some selling left over to provide resistance in a price range from Tuesday's high price to the 52-week high price, so prices may need to consolidate further back toward support at Monday's high price near the LONG TERM TREND LEVELS of the DIA, SPY, and the QQQ before attempting to rally to new 52-week highs. 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, and the velocity with which prices have moved away from this area lends confirmation to the strength of the support at those levels.

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 and the rally on Tuesday has also confirmed the new trend. Traders may wish to initiate new positions on a correction in prices near Monday's high price and the models' LONG TERM TREND LEVELS. Be advised that there are investors and traders waiting to buy near these levels, so prices may not reach a full correction before attempting to move to new highs following a tight range correction.

Resistance for the DIA, SPY, QQQ and the Indexes starts in a range from Wednesday's high price to the 52-week high price and then again at levels 1 to 2% above the 52-week high price. Support for the DIA, SPY, and the QQQ is located at SHORT-TERM TREND LEVELS, LONG TERM TREND LEVELS, Monday's high, Monday's low, and then at last Friday's low price. For the Indexes, support lies at Monday's high, SHORT-TERM TREND LEVELS, Monday's low price, the STOP-LOSS PRICES, followed by last 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