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Some will probably say the market was hit by a perfect storm of negative events including: oil prices, continued dollar selling abetted by Chinese statements, a $39 [cough] billion loss at GM, financial sector disarray and lawsuits, and so forth.

This leads us to bring up the possibility that the August 16th lows for the DJIA [12,845.78] and DJT [47672.35] will be retested. A failure to hold those lows would trigger a Dow Theory sell signal if you're a follower.

All the numbers aren't in for breadth and volume but the WSJ numbers are probably close to being right by 4:30 PM. It looks like a very heavy "get me out" sell-off and perhaps a 90/10 negative day.

Let's look overseas and see how they fared Wednesday:

Wednesday definitely was a "no fun" day unless you were short.

It's hard to imagine the extent of incompetence that US senior corporate management has exhibited over the past ten years and beyond. We don't have crooks today like we had in 2002/3 although that remains to be seen.

GM was once the largest and best US company but today they're fighting for their survival. In the late 1960s GM senior management mocked the VW Beetle. They refused to even sit in a Mercedes Benz in the 1970s and laughed at Japanese imports. They were incredibly arrogant and much too comfortable. It's a disgrace!

Citigroup and Merrill Lynch CEOs have been shown the door over their incompetent oversight. And I haven't even mentioned Countrywide, AIG, FNM, MBI and so forth.

And over the last 30 years we have created a cabinet level Dept. of Energy loaded with political appointees and bureaucrats but no energy policy. Congress and presidents of both parties have not demonstrated any leadership in dealing with this mess other than to blame "big oil".

It's a terrible litany of failure.

Disclaimer: Among other issues the ETF Digest maintains positions in: USO, GLD, GDX, UDN, IEF, SPY, QQQQ, IGN, EWZ, RSX, INP, FXI and EFA.

Source: Wednesday's Selloff Leaves Market On Weaker Ground