Morning Dew - 28 May 2013

Key Points

• Another rout for JCI at the beginning of the week after last week's statement from the Fed boss Ben Bernanke that the US central bank may scale back its stimulus should the US economic data warrants it, especially if employment outlook gets better. In addition, bearish echoes from the latest China's manufacturing PMI data remain. Technically speaking, the decline on JCI on Monday took out the support at 5089 and this has set the next support line at 5030 and subsequently, 4907.60. Resistance will be at 5174.67 and 5251.3. As U.S. market was closed on Monday, the JCI is likely to fluctuate between 5050-5100 with an outer band between 5030 and 5175. With the MACD now slipped to negative, the bears are holding the advantage.
• US market will return this Tuesday with the consumer confidence data for May. The reading is seen at 71, better than earlier month when it was 68.1. Still, this week's string of economic data is seen moderate with the U.S. GDP to be released on Thursday and personal income and consumption on Friday along with the University of Michigan confidence index.

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