Buy Pullbacks at Your Own Peril

	Alan Farley The Street.com
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The market has begun a decline that could last for a while. Any bounce is a chance to short.

The indices rolled over at resistance last week and dropped back toward support at the 20-day and 50-day moving averages.

This phase of the awakening downtrend is almost over and should yield a bounce that tests the willpower of late short-sellers. But that uptick should fail and eventually lead to a deeper decline.

Early warning for last week's reversal came in the chip stocks. Starting on Tuesday, their price action predicted the end of the rally off the London bombing lows and the start of a correction that may reach the 2005 lows sometime in the fourth quarter.

Sell Signal

The Semiconductor HOLDRs Trust hit a rally high at...

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