The dividend later today may well underpin the bulls for today, but we have a cluster of strong resistance at the 7275 level so a rise to here may well then see a pull back towards the pivot at 7234. The bulls defended the 7200 level yesterday so will be keen to keep the momentum going and a break of 7275 will likely lead to the 7328 resistance level that is still in play from Sunday night.
On the flip side, a break of the pivot and then yesterday's low at the 7202 level will likely see the fib level at 7181 tested and things then start to look a bit weaker. A drop down to 7095 where we have the bottom of the 10 day Raff for today looking distinctly possible. Poor earnings data yesterday weighed on the market and we have UK earnings wage growth data out today - probably going to be fairly lacklustre. Carney is speaking at 14:15 in London so traders will be keeping an ear out for that, while the Fed's meeting minutes at 7pm will move things as they will contain thoughts on rate rises in the US.
For today I am looking at an initial rise towards the 7275 level then a dip back from there towards the pivot area which may well act as support. Morgan Stanley (NYSE:MS) were a bit pessimistic yesterday saying that the drop from 7790 was just the starter and we should be braced for a more significant downturn. Probably trying to scare retail traders into selling!
If the bears break the 7200 level then look for support at 7181, but shorting the 7275 area should yield a few points today.