Sam Collins

Market Showing Signs it May Head Lower

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After Thursday's 172-point rally, investors were expecting some follow-through on Friday. Instead, what they got was a market that traded in a range of just 67 points throughout the day and meandered about aimlessly for the entire session.

Technology stocks were almost the only sector showing gains, as they attracted small surges of buying. (Get 6 Tech Stocks to Own Now.)

Palm (PALM) gained more than 15% after saying that it would be cash-flow positive by year-end. Apple (AAPL) and Research In Motion (RIMM) rose more than 1%.

And there was positive economic data showing improved consumer sentiment and higher personal incomes and spending.

But even that wasn't enough to shake investors from their lethargy. The Wall Street Journal quoted several sources as saying that the recession is likely to continue and weigh on stocks through year-end.

At the close, the Dow Jones Industrial Average (DJI) was down 34 points to 8,438, the S&P 500 (SPX) fell a point to 919, and Nasdaq (NASD) rose 9 points to 1,838.