Precarious

The futures market was perched at a precarious position cominginto trading Monday. Last week’s precipitous decline had positionedthe spot February contract near its all-time low of $1.77, leavingsome traders to suggest that Monday’s price action could dictatethe course of trading for the rest of the week. A move below $1.77could open the door for fresh selling, while a rebound above $1.77might prompt short covering. And although Monday’s move below the$1.77 level did not entice the cascade of selling some expected, itdid signify that the bears are not finished yet. February endeddown 5.1 cents to $1.779 after trading to a $1.74 low.