Despite another bad news day the market held up well and remained above 840 -850 levels on the SP.Bloomberg indicated that 30% of the hedge funds will be defunct by the end of this year, with more to come next year. Hedge funds can delay the payment of redemptions but sooner or later they have to do something. Pressure by the participants forces hedge funds to sell into weak markets, which exacerbates the selling pressure. Concerns caused by the Madoff mess, with losses likely to be in the tens of billions, will provide more reasons for hedge fund investors to get out.