There could be a new low awaiting the S&P 500 this year as Wall Street is taking the third consecutive day of stock losses on Wednesday, no doubt dragging many exchange traded funds (ETFs) along for the ride.

The United States is officially not going to buy out the toxic mortgage debt held by banks with the $700 billion in bailout money, leaving a big question mark for how banks are going to revive lending, reports Leah Schnurr for Reuters.

Best Buy Inc. (BBY) added to the down mood as a dismal forecast was reported, creating a worsening outlook for consumer spending. In the company’s 42 years, this has been the worst yet. A sell-off in large-cap technology companies pulled the NASDAQ down to its lowest level in five years, going the distance since the late October closing low.

Intel Corp. (INTC) added to the negative outlook for technology, sending stock index futures lower. A forecast 14% lower than expected resulted from weaker global demand.

Treasury Secretary Henry Paulson said the Treasury’s focus now would be on shoring up financial institutions with direct investments and his comments served to underscore the extent of the problems in the U.S. economy.

Investors are simply confused as Congress has switched course from its original plan.

In response, the Dow Jones industrial average slid 4.7% yesterday. What will happen today? We will soon find out.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.