Morning Dew - 23 May 2013

Key Points

• Ben Bernanke in his testimony before the Congress said that premature monetary tightening may endanger the recovery of U.S. economy as high unemployment rate persists, accompanied by government spending cuts. Still, the Fed's boss took away some of the positivity of his statement by saying that the Fed could 'step down' the pace of its asset purchasing program should the labor market starts to show sustainable improvements. More specifically, the Fed expects to maintain its current policy until the jobless rate reaches 6.5% or inflation pops above 2.5%. In addition, New York Fed President William C. Dudley indicated that the Fed will wait three to four months before the FOMC votes whether the economy is good enough to endure a stimulus reduction.
• JCI ended higher on Wednesday at 5208 after failed setting another record high. Resistances stay at 5284, 5300 and 5367 while interim support comes in 5161 before the next ones at 5142 and 5116. Bernanke's speech sent the U.S. stocks into the red and this will also bring negative impact on JCI during the coming session. Look for JCI to gyrate around 5116 and 5251 for Thursday.

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