Strong open for the US stocks. S&P approaches 100 day moving average at 3900 | Forexlive

The US stocks are opening sharply higher after the lower than expected CPI data today.

A snapshot of the market 6 minutes into the open is showing:

• Dow industrial average up753.52 points or 2.32% at 33267.47
• S&P index up 128.15 points or 3.42% at 3876.71
• NASDAQ index up 484.94 points or 4.68% at 10838.18
• Russell 2000 up 66 points or 3.77% at 186.70

For the S&P index 100 day moving averages up at 3901. Getting above that moving average, and staying above that moving average level, increases the bullish bias for the broader stock market . That MA was broken in August, and continued the run at that time, up to the 200 day moving average (green line). Sellers leaned and the price moved lower.

The 200 day moving average is currently at 4082.30 and would be a target on a move above the 100 day MA. Ahead of that target, is the 61.8% of the move down from the August high at 4006 (near the nice round 4000 level).

PS also near the 100 day MA is the 50% midpoint of the move down from the August high.

The buyers are making a play but getting above the 100 day MA/50% up to 3908 is key going forward.