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The

Nasdaq Composite Index

ended Tuesday down 74.79, or 1.8%, at 4148.89. Yes, a huge loss, but nowhere close to the 575 point decline it had around 1:15 p.m. EDT before it bounced back. And yes, there was lots of blood and pain out there, particularly for those who were buying tech with the Nasdaq near the 5000 level.

But investors must take into account that the Nasdaq was up 86% last year, and while not all investors realized gains like that, things aren't quite at the depression-level yet. In fact, at 4148.89, the Nasdaq is still above the 4069 level it ended at in 1999.

TheStreet.com Internet Sector

index finished down 27.61, or 2.8%, at 970.80 after trading as low as 819.04.

TheStreet.com New Tech 30 was down 16.36, or 2.5%, at 630.67.

The big question investors want to know is whether the selling is done? After all, Tuesday, was somewhat similar to Friday, when the Nasdaq dropped as low as 4381, but closed at 4572.60. Technical analysts like to talk about a day of capitulation, or a day when it appears that things can't get worse, only to have the market close strong like Tuesday.

We've stayed in email contact with Bob Dickey, director of technical research with

Dain Rauscher Wessels

. On March 29 he called accurately that the Nasdaq would hit 3900. He also said the recovery was positive, but those expecting a quick push back to the 5000 level may be disappointed.

"The fact that the market broke 3750 by a large margin, and then closed strongly above that level, is a positive," he wrote. "But, the road back will be choppy and not have the high-octane strength of the previous advance. It does mean that the worst is over for at least the next one to two months."

And Dick Dickson, technical analyst with

Scott & Stringfellow

, said if the Nasdaq closed near its highs Tuesday (4149 at close vs. a 4283 high -- we'll say that it did) and there was volume of around 2.5 billion (it had 2.9 billion), then a bottom was likely in place. He said the recovery rally should last one to two weeks at a minimum.

What are some other factors that will influence Wednesday's trade? Brokerages may still be making margin calls to those with deep losses, setting up the market for early morning selling Wednesday.

TheStreet Recommends

Yahoo!

(YHOO)

will become the first of the major Internet names to report earnings after the close tomorrow. And the market must still get past what is expected to be a strong

employment report

on Friday.

Yahoo! closed up 7 3/8, or 4.6%, to 167 1/2 after trading as low as 132 3/4. Among other traditional Net plays,

eBay

(EBAY) - Get eBay Inc. Report

closed up 23 3/4, or 17%, to 167 after trading as low as 131 1/4.

priceline.com

(PCLN)

closed up 9 7/8, or 15%, to 75 1/4 after trading as low as 58.

Inktomi

(INKT)

closed down 9 7/16, or 5.6%, to 158, though that was 45 1/2 points above its intraday low of 112 1/2. Also,

Exodus Communications

(EXDS)

closed up 14 1/8, or 11.5%, to 136 15/16 after trading as low as 92.

First Union Securities

added Exodus to its analyst action list, saying that it continued to be its top pick within the Internet infrastructure services universe.

Business-to-business plays have been the most active of late and that was certainly the case Tuesday.

FreeMarkets

(FMKT)

closed up 30 9/16, or 31%, to 128 11/16 after trading as low as 90 1/2.

Vignette

(VIGN)

finished up 30 7/32, or 25%, to 153 1/4 after trading as low as 102, while

E.piphany

(EPNY)

ended up 1, or 1%, to 100 1/16 after trading as low as 78 1/8.

Check Point Software

(CHKP) - Get Check Point Software Technologies Ltd. Report

closed up 25 1/2, or 19%, to 160 3/8. Broadband network supplier

Terayon Communication Systems

(TERN)

said Tuesday that it was collaborating with

SofaWare Technologies

, a Check Point company, to provide homes with broadband cable-modem Internet access. The companies will incorporate technology from Check Point in cable modems produced by Terayon and supplied to cable television network operators offering "always on" high-speed Internet access. Terayon finished up 31 9/16, or 19%, to 197 1/8.