The Correction and the Denial of the Correction

At first, it looked like we could overlook the weakness in tech.
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In the end there is too much money that wants out of tech. And too many questions that remain unanswered. Why did so many companies miss the top-line revenue growth? What did go wrong?

Initially it looked like we could overlook the weakness. It seemed that the market could weather it. But by the time the Sell Hour comes around (2 p.m.), things begin to break down and then, like clockwork, the mutual funds that mirror the

Nasdaq 100

come in and clobber things. That last half-hour was brutal.

The correction continues and the denial about the correction continues. The hoped-for broadening of the market, which seemed like it was on target with the utilities, drugs and bank indices all up, partially reversed and by the end of the day the drugs were down big. Sure, I was cheered by the "rally" in the banks, but the damage to tech could make whole nontech sectors blanch!

The lesson here? Like the other day when the Nasdaq first held in and then rolled over, if you only came in at 3:31 p.m. each day, you would learn everything you need to know about this market.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column by sending an email to letters@thestreet.com.