Morning Dew - August 16th 2013

Key Points

• There is no change in view that the JCI is seen capped at the EMA resistance around 4710-4720, but the downside is vulnerable as the weak Dow is supporting the negative outlook scenario so far. We are likely to resume its downward push towards 4563 key support or even extend the slide towards 4546.
• CPI data showed that inflation has slowed a bit from 0.5% to 0.2% gains in July, matching the consensus. Excluding food and energy, the CPI rose 0.2% in July. The biggest jolt to the market last night was the jobless claims which fell 15k to 320k for the week ending August 10th. It was the lowest reading since October 2007, beating the consensus of claims level at 335k. The better-than-expected claims is seen supporting the scenario of Fed tapering of stimulus in September when the FOMC meets on September 17-18. 

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