A sharp drop in the

Dow

and failure to follow through on early gains left technology stocks stumbling into the close, Thursday.

The

Nasdaq

closed down 65.26, or 2.0%, at 3205.35 after trading as high as 3365.84.

TheStreet.com Internet Sector

index ended down 24.48, or 3.2%, at 746.77. The Dow dropped 211.43, or 2.0%, to 10323.92.

One trader said that he was playing the current volatility and selling into strength and buying on weakness. The trader said he was picking support and resistance areas (3000 being the support that the Nasdaq held yesterday) and using those for entry and exit points.

While the

employment report will be a focus for what the

Fed

is going to do next week, the trader said clearer Fed intentions may not be known until the inflation indicators are released in the following two weeks. Until then, he said, the range trade should persist, with sentiment remaining mostly negative.

Traditional Internet stocks had a rough go.

DoubleClick

(DCLK)

closed down 5 1/8, or 10.6%, at 45 9/16;

Amazon.com

(AMZN) - Get Report

finished off 3 1/16, or 6.3%, at 45 1/2;

eBay

(EBAY) - Get Report

ended down 4 1/2, or 6.9%, at 60 1/2 on its first day of trading at a postsplit price;

Yahoo!

(YHOO)

dropped 7 3/4, or 6.3%, to 115;

CMGI

(CMGI)

fell 6 1/16, or 11.8%, to 45 7/16; and

Inktomi

(INKT)

ended down 10 9/16, or 9.5%, at 100 3/4.

Among some other stocks of note,

E.piphany

(EPNY)

was up 3 5/8, or 6.6%, at 58 1/4;

Kana Communications

(KANA)

ended down 2 7/16, or 6%, at 38 3/4; and

Vignette

(VIGN)

slipped 2 3/8, or 8.5%, at 25 1/2.