Morning Dew - 20 June 2013

Key Points

• Early gains evaporated on Wednesday as JCI waited for the result of the FOMC meeting. JCI now looks vulnerable to more pressure after Chairman Ben Bernanke reiterated the Fed's stance that stimulus will be removed as soon as the economy outlook improves. This may be around mid-2014, according to Bernanke. Fed expects the jobless rate in the US will decline to 6.5%-6.8% by the end of next year, possibly triggering the Fed to start raising the lending rate.
• Shaky JCI will look for supports at 4793, 4739, 4695, 4651 and 4597 before the key 4510. Upside seen capped at around 4880, 4968 and 5076. It is likely that we are currently within a large consolidation range between 4500 and 5000.

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