US stocks open higher. Nasdaq looks toward 100 day MA | Forexlive

The major US stock indices are opening higher after the tamer than inflation PPI data. That is good news for the inflation view, but inflation still has a ways to go. We will see, but the moves in the CPI and now PPI, are in the right direction for stock buyers.

Nevertheless, the declines from yesterday have reversed and then some. The Nasdaq is back to leading the way (it was the weakest of the major indices yesterday). The Nasdaq index is also approaching a key technical target.

A snapshot of the market 4 minutes into the open is showing:

• Dow industrial average is trading up 389 points or 1.16% at 33925.77.
• S&P index is up 65.35 points or 1.65% at 4022.61.
• NASDAQ index is up 200-7511 4 points or 2.46% at 11472.36
• Russell 2000 is up 31.98 points or 1.72% at 1893.23

Looking at the NASDAQ index daily chart, the price high today reached 11492.62. That is within 24 points of its 100 day moving average at 11516.40. Get above that level tilted daily bias more to the upside.

For the S&P index, the high price today reached 4028.84. It’s 200 day moving average comes in at 4076.21. That takes index within 4 points of its key 200 day moving average. Back in August, the high price stalled against that moving average level (and also downward sloping trendline). There are a number of traders and analysts looking at the 200 day moving average as a key technical target. It also fits in with the story that stocks can go to high as they represent a potential stimulus to inflation.