Call it voodoo or magic or witchcraft. But the technology recovery appears to be based on technical factors that signaled a time for people to step in and buy. Internet stocks have taken part in the recovery, though not wholeheartedly.
Nasdaq Composite Index
was recently down 9.74, or 0.21%, to 4572.88, though it had traded in positive territory after trading as low as 4455.10. The 4450 level that
Tom Costello claimed he told everyone about (neglecting to mention he was touting 4600 a couple of days ago), was roughly the top of a trading range the index saw before it broke toward 5000. It was also a level that traders saw as a place to get back into tech stocks. A 50% correction from the January low of 3748 to the all-time high of 5132 comes in roughly at 4440.
But whether the recovery was going last was another question. Rotation from tech into what were perceived as the better-valued Dow stocks was continuing, with Dow gains topping 400 points at one point. But Dick Dickson, technical analyst with
Scott & Stringfellow
, said the Dow has gone up too far too fast. He says the rotation back into technology should occur relatively soon, with many stocks much cheaper than they were a week ago.
TheStreet.com Internet Sector
index was down 20.27, or 1.7%, to 1175.14.
TheStreet.com New Tech 30 was down 8.75, or 1.2%, to 4572.88.
A number of Net stocks continued to get hammered, while others have shown some recovery. Among those on the downside,
was down 26, or 7.7%, to 310.
was down 18 1/4, or 11%, to 141 1/2, though it traded as low as 130.
was down 5, or 3%, to 182, but had traded in a range of 170 3/16 to 196. And
was down 8 3/4, or 6%, to 129 11/16, though it traded as low as 121 5/8.
Among stocks in the green,
was up 6 13/16, or 4%, to 161 3/8, though it traded as low as 153 3/4;
was up 8 3/16, or 5%, to 166 11/16, more than 10 points from its session low of 156 1/16.
was up 9, or 4.8%, to 198 1/2 after trading as low as 184 1/4, while
was up 14 7/16, or 8%, to 201 3/8.