The futures market again came under heavy selling pressure onWednesday as new bearish technical factors added to the alreadynegative fundamental outlook. The September contract never had achance, managing to post a high yesterday that matched Tuesday’slow, while slipping 6.6 cents to settle at $1.762. Estimated volumesubstantiated the price move, with a whopping 93,150 contractschanging hands.

Sources were quick to point to the October contract whichsustained even greater losses than September as a bearish sign.”Looks like the speculators are going to try the short-side of themarket again,” a cash trader said referring to apparent selling byfund groups Wednesday.

Another trader felt position liquidating ahead of yesterday’soptions expiration were partially responsible for Wednesday’s priceerosion.

Looking ahead to expiration, one analyst feels Wednesday’sSeptember settle below the previous life of contract low at $1.775is “very significant.” He looks for a possible move to the nextlevel of support — a spot low on the continuation chart at $1.64as an objective. He might be right. September already was movinglower, last printing a $1.74 in Wednesday evening Access trade.

Sources generally considered the 71 Bcf injection estimated bythe AGA last night as neutral.

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