RE: rally caps on..hedge funds selling is exactly what is happening. Merrill Lynch and Morgan Stanley have sold 2.6 million between them since Oct 17 and are still 1.3 million or so in the hole at the moment. They have backed off their selling today.. so far. We will see if this can get through the 1130 am sell off to new lows as the pattern has been. Not sure what it is with 11 to 1130 am but they seem to hold until about there and then sell off.