Morning Dew - 31 May 2013

Key Points

• Better than expected data may spark declines while worse than expected data may actually put up support on sentiment. At least that's what we may be seeing for some time. The Dow escaped another round of decline after the U.S. 1Q13 GDP was reportedly growing at the rate of 2.4%, less than the expected 2.5%. In addition, jobless claims also ticked up last week to 354k, more than expected; plus pending home sales decelerated in April, much slower than last month's month-on-month data. Less than expected data will give more case for the Fed to maintain its stimulus rather than scaling it back, hence market-friendly - for now.
• JCI fell to as low as 5111 on Thursday, just above the support at 5108 before it settled the day at 5129. While the downside remains open, the small gains on U.S. and European stocks overnight may limit the downside for now. Supports remain at 5108 while below 5072 could trigger a deeper fall towards 5046. Upside is seen capped around 5225.08 with near-term resistance at 5153. As the MACD slips back to the negative with RSI falling, we're simply not out of the woods yet. 

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