STOCKS OPEN HIGHER -- NASDAQ CONTINUES TO LEAD -- CHIPS REGAIN 200-DAY LINE -- MICROSOFT AND APPLE REMAIN STRONG -- ALHPABET AND FACEBOOK LEAD COMMUNICATION SERVICES SPDR HIGHER

STOCKS OPEN ON A STRONG NOTE... Stock prices opened much higher this morning.   And all three major stock indexes are bouncing off some moving average lines.  Chart 1 shows the Dow Industrials bouncing off their 20- and 50-day moving averages which is usually their first line of support.  Chart 2 shows the S&P 500 bouncing off its green 20-day line while remaining above its blue 50-day line.   The big question, however, is whether they have enough strength to challenge or surpass their late April highs.   And the tech-heavy Nasdaq market continues to lead the way.

NASDAQ COMPOSITE REMAINS ABOVE ITS 200-DAY LINE... A lot has been riding on the ability of the Nasdaq market to remain above its 200-day average.   And so far it's doing that.  Chart 3 shows the Nasdaq Composite Index gapping higher this morning while remaining above its red line.  It's getting some help from semiconductor stocks which are rebounding today.  Chart 4 shows the PHLX Semiconductor iShares (SOXX) climbing back above its 200-day line today after slipping below it late last week.   The usual big tech stocks are also having a strong day.

FOUR BIG TECH STOCKS CONTINUE TO LEAD...The biggest tech stocks continue to lead the market higher.  Chart 5 shows Microsoft (MSFT) trading at the highest level since February.  Chart 6 shows Apple (AAPL) trading higher as well.  They're the two biggest stocks in the market.   Charts 7 and 8 show Alphabet (GOOGL) and Facebook (FB) also trading higher.  Those two big Internet stocks are helping lead the Communication Services Sector SPDR higher.  Chart 9 shows the XLC in the process of challenging its 200-day moving average (red circle).