Morning Dew - 5 June 2013

Key Points

• JCI returned above 5k as the global stock markets bounced back and forth between positive and negative performances. Tuesday's rebound is seen limited to 5056 for now although beyond this resistance lie 5093, 5130 and 5177. Support will be at 4936 at the nearest while 4907 will be the key support to watch. We saw another red from the Dow overnight so we may as well see another red for JCI this Wednesday.
• Recent strings of Fed talks about the stimulus have kept the market cautious over the future of the Fed's bonds purchases program. Fed Bank of Kansas City President Esther George urged the Fed to scale back the purchases while her San Francisco colleague John Williams hinted that modest downward adjustment of the program is possible as early as this summer. Meanwhile Dennis Lockhart who heads the Atlanta Fed Bank said that he is getting more cautious over a reduction as the economic data have been very mixed.
• US employment data will be the next big thing for the market as the data will shape the market's perception over the near-term. The better the job data will be, the more likely the market will think that the Fed will scale back the stimulus as soon as September. ADP employment report will provide the hint on the private sector side this Wednesday. The market expected private sector to have added 170k jobs in May, up from 119k in April.

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