Morning Dew - 24 April 2013

Key Points

• JCI fell to test the support at 4,973.58 (Monday’s low) to hit the low at 4,971.10 before settled at 4,975.33. Fatigue has become visible after two consecutive failures to hold the close above 5,000 mark. Support now seen at 4,960, 4,940 and 4,920 before the crucial 4,895. Resistances remain seen at 5,026.92, 5,089 and 5,120.
• Other major Asian indices also slipped while Euro zone and German PMI indexes for manufacturing worsened in April, adding concern for prolonged slowdown in European economic outlook. France saw improvements in both manufacturing and service sectors while EZ saw its service sector index ticked up. Nevertheless, all of these indexes have stayed below the 50 mark, the borderline between expansion and contraction.
• U.S. New home sales up 1.5%, trailing estimates of a 1.9% increase but a sharp turnaround against prior month's 7.6% dip. The Dow sank steeply on a false report of an explosion in the White House, but immediately rallied to finally ended the day up by more than 1%
• Goldman Sachs closed its sell recommendation on gold after the metal exceeded its target at $1,450. Now GS targets gold at $1,530 in 3 months, $1,490 in 6 months, and $1,390 in 12 months. GS issued sell reco on gold before the metal fell 13% recently.

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