Profit Taking? Or The Start Of A Decline?

The markets have continued to selloff, on the heels of this morning's weak GDP report. The Nazz is down the most (-1.6%), while the SPX is off -0.9%.

We know that profit taking had to set in at some point. No market goes straight up without pausing. I have heard some traders say that the market may have topped until the election.

This sounds feasible to me, given the run we have had and the overbought nature of the market. I still feel that there is enough investor skepticism about that any pullback will be relatively mild. But I would not be surprised at all to see the market chop around between now and election time (Nov. 7th).

Semis are down the most (-2.0%), after a report out of Goldman that motherboard demand has fallen off a cliff. This may be due to consumers pushing out PC buys until Vista comes out.

long GS, MSFT