All things considered, it was a relatively successful day for the technology sector, though despite some volatile trade, little progress was made in the week.
ended the day up 49.39, or 1.3%, at 3874.95. For the week, the index gained about 60 points.
TheStreet.com Internet Sector
index finished up 22.04, or 2.4%, at 948.51, nearly identical to the 945.42 level it finished at last week. The markets rallied following this morning's
Producer Price Index
, which provoked some confusion with a weaker-than-expected overall number, but a stronger-than-expected core rate (ex-food and energy prices). We'll defer to
wrote earlier today that on net, the data were bullish.
And we'll end the week with some comments from Steve Frenkel, market strategist with
. We got all over Frenkel for
missing the latest leg up, and in typical Frenkel fashion, he took it well.
"I'm not making any excuses," he said. "I should have seen it. I blew it. But I don't hide, I don't make excuses, I should have been able to see we had a rally coming here, but I didn't."
We then asked Frenkel to explain what went wrong with his Elliott Wave technical analysis. The gist: The market was in a type of wave pattern, where it would go down, then come back up, then go down again. While Frenkel was successful in getting the first wave down, he missed the move back up. He believes that the market is topping at current levels and is scheduled for another wave down.
Frenkel now has a target for the Nasdaq of 2800, which represents a 28% decline from where the index topped out today, or the same percentage decline it made from April 10 to April 17. Frenkel expects the Nasdaq to decline by at least that amount.
But before we let him off the phone, we again drilled Frenkel about his recent call, hoping to rile him up as he headed home for the weekend.
"I screwed up," he said. "But I'm amazed a lot of my peers declared this is the bottom in the last week. One problem -- they never declared the top. I at least called the
top at the right level so I don't feel as guilty about not proclaiming a bottom because it's not
bottom. It will eventually be pierced. I still should have seen it and called the interim bottom, but I still don't feel as guilty. I think it's worse to call a bottom without ever having called a top."
Have a good weekend Steve. We've got the first round.
In today's action,
closed up 1 15/16, or 11.2%, at 19 3/16, though that was far from its session high of 22 1/2. Gains came on
news that MP3.com had settled copyright infringement lawsuits with
Warner Music Group
. However, rumors of a settlement circulated earlier in the week, so traders who bought then were likely taking profits today.
closed up 7 7/16, or 8.2%, at 98, while
ended up 11 5/8, or 11.9%, at 109 5/8. About the only news on Foundry today was that it was named as a favorite networking stock by