Morning Dew - September 5th 2013

Key Points

• Ahead of the release of the key nonfarm payrolls data and also ahead of the US military intervention on Syria, stocks gained in the US and Europe, but mixed in Asia. JCI fell again after an attempt to crack the resistance at 4206 failed. The poor domestic data as well as weakening Rupiah have been pressuring the index recently and this situation is expected to stay for a time being.
• JCI's technical outlook suggests that the index may fall again to around 4022-4026 to complete the zigzag corrective move from 4206.95. Once there, JCI may try again to make its way to 4373. Near-term the resistance will remain at 4206.95 while below 4022/26 will set another decline towards around 3936-3978.
• US ADP employment report for August is set for release on Thursday. The data could serve as a preview to the upcoming NFP data set for release next Friday. Another key data is the ISM index for the service sector which measures the US service sector in August. With the better-than-expected reading of the manufacturing sector data, a similar reading on the service sector will provide another boost for the market.

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