Morning Dew - 13 May 2013

Key Points

• JCI has been largely unfazed by the rating downgrade by S&P and the warning issued by Moody's over its fuel policy. The index continued to rally higher and reached 5115 last week, just above its 5114 Fibo projection target. This opens up the potential for the next climb to 5242 the coming week. Support now comes at 5062, prior resistance-turned-support and the key 5000. While volume has not seen new peak, MACD has popped to the positive territory which is a positive sign for the index. The coming week is still seen positive for JCI.
• After a quiet week on the economic data front, the coming week will be somewhat eventful. U.S. Inflation will be released, along with several consumer-based data. University of Michigan sentiment and retail sales are scheduled for release while other data include housing index as well as industrial production and capacity utilization.

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