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Net Sector Still Bleeding Red, and One Observer Doesn't See a Bottom

Nasdaq, Dot and The New Tech 30 all being crushed.

Back on March 29, Robert Dickey, director of technical research with Dain Rauscher Wessels, told us he was targeting 3900 in the Nasdaq. At the time, the Comp was trading around 4600. Just four trading days later, the Nasdaq spiraled down to 3900; today it's even lower.

After initially stopping and bouncing almost exactly at 3900, the Nasdaq has dropped below that level, trading as low as 3649.11. The Comp recently was down 315.73, or 7.5%, to 3907.05.

TheStreet.com Internet Sector

index was also down 99.77, or 10%, to 898.64.

TheStreet.com New Tech 30

was down 101.13, or 15.6%, to 545.59.

What was Dickey saying today? It's not over.

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"No bottom yet," Dickey wrote in an email. "Too many are still looking for the entry point. The bottom won't be here till the fat investor pukes, and I feel none of that panic yet!" Dickey added that someone he talked to said technology stocks were "ridiculously cheap," but Dickey said he was not ready to buy yet.

When the index was around 3900, Dickey said he saw support at 3750, or roughly the low from Jan. 31. But if that level was broken on a closing basis, it could go down to the 2900 level. He said if there was a reversal in the last hour and the index showed some strength, it could indicate a bottom was in place, but he was not ready to say that yet.

Dick Dickson, a technical analyst with

Scott & Stringfellow

, said there was some support around the 3725 level, but now the index appeared to be targeting the 3400 level, which is its 200-day moving average.

"I think we're in a death spiral right now and it ain't pretty," he said. Dickson said compounding the problem is that margin calls were building and investors were cashing in on gains made in the rest of the market to meet margin calls.

When he looked at a chart for the DOT index, Dickson said, "That's ugly." He said the DOT already had broken through its 200-day moving average at 872 and there was some support at 820, which was a high back in April of last year.