Selling in the Nasdaq has been relentless and was nearing some critical areas.

Blame it on fears that the

Federal Reserve

will continue to aggressively raise rates if you want. But just as important, there is little reason to buy for fear of catching that falling dagger.

The Nasdaq was down 150.03, or 4.2%, at 3388.68 in recent trading.

TheStreet.com Internet Sector

index, or DOT, was down 52.63, or 6.0%, at 830.93.

In his daily commentary, Bob Dickey, director of technical research with

Dain Rauscher Wessels

, noted that the Nasdaq was pressing to test the most recent closing low of 3385 from May 10. With the market in a range trade, Dickey wrote that it was possible that that level would hold, though new weakness in some of the "older New Economy stocks" was putting additional pressure on the support. He wrote that the next several days would be "critical for the Nasdaq to level off once again, and not break down."

"The reasons to buy stocks are few at the moment, with many investors resigned to waiting for the next string of economic reports leading up to the Fed meeting at the end of June," Dickey wrote. "The market appears to be quietly waiting for a catalyst, which may not be evident for the next month or longer. In the meantime the slow leak out of technology continues to the benefit of the Old Economy issues, which look like the best place to be in terms of relative risk and modest reward."

The Nasdaq could still be setting up a test of its 3227 low from April 17 if support levels do not hold, while Dickey also has targeted 2900 on the Nasdaq in the past.

Losses were widespread and few stocks were spared. Among traditional plays,

Yahoo!

(YHOO)

was down 8, or 6.1%, at 124 despite all the back-slapping it received after its analysts meeting yesterday.

eBay

(EBAY) - Get Report

was down 7 1/16, or 5.7%, at 117, and

DoubleClick

(DCLK)

was off 2 7/8, or 5.1%, at 53 1/2.

George Mannes

took a look at how DoubleClick was moving closer to an agreement on privacy standards with the

Federal Trade Commission

in an earlier

piece.

Other losers of note included

Sycamore Networks

(SCMR)

, off 11 1/16, or 12%, at 81 3/16 in postearnings profit-taking.

Ariba

(ARBA)

was down 4 15/16, or 7.6%, at 59, and

BEA Systems

(BEAS)

was down 4 5/8, or 11.6%, at 34 1/4.

There were a couple of Internet stocks that were showing some green.

Egreetings

(EGRT)

, which sends special messages via the Web, was up 1 7/32, or 51%, at 3 19/32 on news it will be a service provider for

Microsoft's

(MSFT) - Get Report

MSN

online card services.

Also,

Kana Communications

(KANA)

was up 11/16, or 1.7%, at 40 3/16 after

ING Barings

raised its rating on the stock to strong buy from buy and set a 100 price target.