09:25am  ~  Finally got some fairly reliable internet down here after it failed last Thursday night so I can update the diary this morning. Still in holiday mode so no chart watching for me today, we are off on the train to Looe for the day.

Looking at the U.S. equity charts for last week I can see the Portuguese ‘situation’ caused the bears to make an appearance, with the S&P500 dropping down to a support level at 1955 which was previously a small resistance in the second week of June. The Dow Jones 30 index also had a bearish week overall but seems to be recovering in futures trading this morning as worries over Portugal seem to be subsiding. Looking at the charts with a technical bias it would seem that we’re not going to experience a full-blown reversal that some traders have been predicting for the past month, it looks more like a small breather before a continued march onwards. The European Central Bank are very wary of how fragile the Euro economy is at the moment so I believe they will step in pretty sharpish to stem any worries. The German stock market has rebounded as well after resting around the 9600 support for a few days and the London FTSE 100 has also shown good gains on the market open just over an hour ago.

With all this volatility and bad news for equity traders, it is no surprise that Gold has benefited from renewed safe-haven demand, it gained $2.30 at the close of Friday’s session, finishing at $1338 although there is some weakness this morning as worries over Portugal dissipate. There is good support around the $1310 level so watch out for bullish trading opportunities there.