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

Chicago, IL (PRWEB) November 1, 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 gapped higher at the open, rallied, failed to overcome resistance at the 52-week high level, sold off and then consolidated near mid-range for the remainder of the session leaving the models with long positions. Thursday's failed attempt at new 52-week highs does not necessarily signal the end of the price advance, but it does indicated that it will take more than one day to move prices significantly higher. There is still some selling left over to provide resistance in a price range from Thursday's closing prices to the 52-week high price, so the markets 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. The stage is set for Friday as a violation of Thursday's low price should send prices back to support 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 they attempt to move to new highs following any price range correction. There is still the possibility that prices could post new highs with a breakout on Friday, but that is not very likely as of now.   

Resistance for the DIA, SPY, QQQ and the Indexes remains at 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 Thursday's low, 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 Thursday's low, 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