If that's what BNN said, then BNN is not to be believed IMO.

Yes. They were/are required to readjust their holdings according to the reduced index values. Most of that was finished by last week. Note the oil sector which had to increase their holdings but got clobbered today.

Yes. The funds do tend to trade somewhat stupidly (like a bull in a china shop). They don't sell with the finesse that a strictly profits oriented trader would do, but neither do they collusively get together and dump what they must sell all in the exact same instant as was done today. $20 was scrubbed off the price in a matter of minutes. A few suckers jumped in and the selling brought it down to a new low. A few final suckers bought in and the bullion banks "clocked" them as well.

This will be a never ending scenario until such time as people buy with a view to delivery and force them to deliver or default. The "paper money" means nothing to them, although I suspect they are operating profitably based on the way people keep falling for this stupid game they play.

P.