Copper future march delivery closed down 2.9 percent yesterday in New York at 3.2415 a lb. Today the market is weak also, moving down again consistently. The global economic slowdown is reducing demand of the industrial metal and particularly from US, which uses 15 percent of world output.

We believe in a further downwards movement, first support at 3.1050 but could possibly move down to close the small gap left open on 21st december (green and red lines) at 3.0000. 

Investors collected profits after nearly three sessions of big gains, unwilling to leave money on the table amid ongoing economic uncertainty.

The chart below shows how the market reacted to the FED's rate cut.

It is interesting to note that immediately after the FED's decision, the Dow Jones Industrial index was pushed up by speculative movements. In one hour it had gained 220 points, passing from 12,461 points to 12,681.

Then it firmly pulled back, with traders awaiting key reports on the job market and manufacturing set to arrive on Friday. The Dow, which had been up more than 200 points after the Fed's decision, closed down 0.30%, at 12,442.83.

Investors' concerns about the state of the economy have not let up yet.