Stop us if you've heard this one before.

The

Dow Jones Industrial Average

is up. The

Nasdaq Composite Index

is down. The

S&P 500

is straddling the flat line. Cyclicals are performing well. Dot-coms are getting their heads handed to them.

No, the action at midday, at least judging by the indices, doesn't seem all that different from last week. The Old Economy is giving the New Economy its comeuppance.

A closer look, however, shows that this is not entirely the case. True, the Dow was lately up 90, or 0.9%, to 10,685. But four tech companies (albeit old tech) --

IBM

(IBM) - Get Report

Hewlett-Packard

(HWP)

,

Honeywell

(HON) - Get Report

and

Intel

(INTC) - Get Report

-- were collectively adding 86.55 points to the index.

Meanwhile, chip stocks in general were doing well, as were PC makers and wireless concerns. If this is a massive rotation out of technology, a lot of tech is bearing the turmoil pretty well. In fact, the companies that weren't doing well were in the more speculative areas. Investors already saw some pretty big turnarounds in the highfliers last week, and today they got a cautionary tale in the form of

MicroStrategy

TheStreet Recommends

(MSTR) - Get Report

. The e-business software maker said today that it was restating its 1999 results to a loss from a profit -- and has fallen 57.5% as a result.

Perhaps the thing to take away from recent action in stocks is that, yes, there has been some rotation and, yes, there is something structurally different about the market. But this does not mean that things are going to be reversed, that from here on out it's tech heading lower while everything else moves up.

Rather, it may mean that the beaten-down sectors of the market are going to get fresh looks, while investors take a more selective approach toward technology.

"There might be shared leadership now," said Steve Shobin, chief technical analyst at

Lehman Brothers

. "But I don't think the rally is going to happen to the exclusion of tech stocks."

That thought is being echoed on trading desks.

"We just couldn't keep running with only the Nasdaq running up," said John Manahan, head trader at

Brown Brothers Harriman

. "Now, we have a coupling of the two markets. There's a lot of nice action this morning. It's a little on the quiet side, but they seem to be trying to work themselves back here. The market feels good to me."

The S&P 500 was lately off a fraction to 1469.

The Nasdaq was off 57, or 1.2%, to 4741, and

TheStreet.com Internet Sector

index was down 40, or 3.1%, to 1233.

The small-cap

Russell 2000

was down 11, or 1.9%, to 564.

The 10-year Treasury was off 4/32 to 102 3/32, putting the yield at 6.21%.

Market Internals

New York Stock Exchange:

1,474 advancers, 1,372 decliners, 510 million shares. 40 new 52-week highs, 25 new lows.

Nasdaq Stock Market:

1,663 advancers, 2,454 decliners, 819 million shares. 75 new highs, 71 new lows.

For a look at stocks in the midsession news, see Midday Movers, published separately.