Morning Dew - 27 June 2013

Key Points

• JCI booked a stellar rebound on Wednesday as stocks roared 3.82% up. The five-legged rout seems to be over for now and as technical indicators are improving, we may see more upside attempts. Some Fibonacci resistances at 4708, 4812, 4916 and 5044 are seen. In addition a textbook rule of the wave theory adds two more key resistances: 4880 and 5072. Hence, the first leg of this rebound is expected to run its course to 4812-4880 area.
• Another positive day is seen on Thursday after the US stocks registered another positive performance, thanks to less-than-expected 1Q13 GDP. Below forecast GDP is seen supporting a case against earlier removal of stimulus by the Federal Reserve.Despite this common view, it should be noted that the Fed's focus is clearly on the labor market, not the GDP. This will not change the big picture that the stimulus may be scaled down sometime in the last 3-4 months of 2013 and in 2014 we may see the Fed takes it back completely.
• More US data to come on Thursday night are the jobless claims, Personal Consumption Expenditure and personal spending and saving.

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