Was a fairly decent day yesterday in terms of the orders, though with the weakness gold recovered after our initial short and pushed above the 1280 level. US markets fell initially on news that the US tax reforms were still unlikely to materialise. However, the US algos piled in at 2566 and brought the S&P500 back up to 2580 before its dropped off again overnight. The FTSE bulls failed to break and hold above the 7420 level so still looking like we will see the 7375 level shortly. Overnight we have tested the 7390 level and seen a small bounce back above 7400.
The dividend today is 14.6 so we may well see some buying as we approach the close. It's been kicking in around 3pm recently so bear that in mind.
For today I am fully expecting to see the 7375 area. We have decent support at this level along with S2 at 7371, and a fib level at 7363, If this area holds as support then the bulls will be aiming to get the price back above the 7400 level. However, the momentum is with the bears still and the failure to regain ground above 7420 yesterday keeps it that way for the short term.
If the 7363 level breaks then we may well head down to the 200ema on the daily chart at 7336 and the daily support at 7310 - an area that may well see a base form for a rise during December.
We have the dividend of 14.6 today as well, so bear that in mind for the close - we may well see some buying as we approach the close, however, divi hunters have been thin on the ground the past few months, no matter what size the divi is.
So fairly simple plan today really - thinking at a dip and rise, as long as the support area holds. If 7363 breaks then start thinking about shorting down to 7310.