Sept. 23 (MF Global) -- Price Outlook
Today’s market will be somewhat of a tough call, as a bounce from yesterday’s sharp selloff would not be out of the question. Some support may also come from the likelihood that ongoing intervention in the economy by policymakers keeps the economy on a slow-growth trajectory and from continued uncertainty over events in Greece. Over the next few weeks, however, we think that prices will continue to fall and eventually test the $1,580-$1,650 range. Pressure will be applied by the Fed’s move at Wednesday’s FOMC meeting, the resulting strength in the dollar, and from recent CFTC data showing selling by large speculators. We favor maintaining our negative trading affair bias.