One down day is no big deal for the tech sector. But two days like the ones we've just had are a little more troubling.
Nasdaq Composite Index
closed down 200.70, or 4.1%, to 4706.63, which was the second-largest point drop in
history. However, the actual percentage loss didn't even make the top 10 in Nasdaq history. And the Nasdaq is still up around 25% for the year as of Friday, on top of last year's 85.6% gain.
There was nothing that changed fundamentally; this is just a market that has been trading on momentum for some time, and right now the momentum is down. And traders don't want to get left out and are rushing in to take profits. Bob Dickey, technical analyst with
Dain Rauscher Wessels
, indicated yesterday that 4750 was the first support level on the Nasdaq, but if that broke, as it did today, the next support is at 4000. Mercy!
TheStreet.com Internet Sector
index, or DOT, closed down 19.24, or 1.5%, at 1273.73.
TheStreet.com New Tech 30 finished down 71.19 points, or 8.3%, to 789.61. Losses in the biotech sector contributed to the malaise seen throughout the technology sector, while there may also been some concern ahead of the inflation data that are set to be reported later this week.
Losses in the DOT would have been greater were it not for
, a member of the index that closed up 17 1/8, or 9%, at 206 1/8. The Internet infrastructure-software maker announced an initiative to deliver software to wireless operators and Net portals for the delivery of mobile data services.
Traders decided to take profits in many of the sector's hottest issues, and many of those were in the
closed down 36 9/16, or 13%, at 248 15/16;
finished down 29, or 12.5%, at 202 5/16;
tumbled 17 1/4, or 9%, to 174 1/2;
ended down 24, or 9.5%, at 230; and
slumped 24 3/4, or 10%, to 225 1/4
closed down 21 3/16, or 11% to 170 on top of the 8% it lost yesterday on
news that it was buying
. Aspect finished down 12 9/16, or 13%, at 84 1/4.