The technology sector showed signs of bouncing back this week, only to find sellers waiting in the wings. In the end, tech shares were back on the defensive by the end of the session, with Internet stocks taking part in the selloff.
ended the day down 92.85, or 2.5%, at 3676.78, after trading as high as 2914.68.
TheStreet.com Internet Sector
index closed off 34.22, or 4.0%, at 813.02 after trading as high as 894.01. There were reports of a hedge fund with exposure to tech stocks that was in trouble, although those rumors were not confirmed. Other than that, it was more of the same as the tech sector continued to draw the market's wrath. And today, even the
was dragged lower, ending down 201 points.
There were some signs that perhaps the worst was over. The Nasdaq found technical support around the Jan. 6 low of 3715.6 earlier in the day, and continued to hold above last week's low of 3649. But the late selling should put the market in a sour mood tomorrow and could make for an ugly day if investors decide to bail in advance of the weekend.
did what it could to give the sector a lift with a solid quarterly
report, but still ended down 6 15/16, or 9.6%, at 65 1/16, after trading as high as 79 3/4.
Suffering sharp losses were a couple of business-to-business plays,
slide continued today. It was down 50 5/16, or 36%, at 90 11/16 and has now lost nearly 50% of its value since closing at 175 1/4 on Tuesday.
ended down 19 15/16, or 27%, at 55. There was no news behind the losses other than investor dissatisfaction with B2B.
Among other stocks that took a hit,
closed off 23 1/2, or 25%, at 72.
was hit hard, closing down 8 3/8, or 15%, at 48. On a day that parent company
closed down 5 3/8, or 19%, at 22 3/4.
closed down 29 1/8, or 14%, at 175 ahead of its earnings report after the close. Some relief came after the company announced a 2-for-1 split.
We exchanged emails with Bob Dickey, director of technical research with
Dain Rauscher Wessels
. He accurately
predicted that traders would sell into today's strength and responded to a couple of questions. He mentioned that the Nasdaq had support at 3750, but didn't really place much significance on the 3649 low from last week.
"Intraday readings like 3650 are less meaningful, than the around 3750 closes from January. During the day, the market is reacting emotionally to what is taking place at that moment, which changes much during each day. That's why the lower closes of the past two days are more bearish than the slop in between," he wrote. "Have you noticed how the market makes its biggest moves on the open and closing hours? The public has the open, as they are reacting to the day before, and overnight news, but the pros have the close, as they plan ahead." If you care to listen to him, he told us before that if 3750 did not hold, then he did not see much support until 3000 to 2900.