As regards this market being somehow rangebound by rule, I shouldn't think so. It will only be ''rangebound'' in the sense that there are ''price'' levels of the index, both higher and lower, that will be effectively impossible to reach in the real world. Zero, for one.
BTW, if you're a widget manufacturer punching out widgets at $10, then -- before any collapse -- presumably you've been able to sell them for $11, else you're already out of business, right? What you should do in terms of widget futures is to pre-sell your forward production by selling for future delivery. Then, you won't have to fret for a time about the mkt going to $8.
Bad luck, of course, if there doesn't happen to be a widget futures mkt (g!).
Sorry, I was responding to ThinkDifferent's post #41 - I should have included it when I pinged you. Essentially, his question was regarding who would want a long position, as Econ 101 would indicate that the price should drop until it finds an equilibrium point. I attempted an analogy based on your previous post (IIRC, about the turkey future failure).