Fear returned to Wall Street on Wednesday, sending the S&P 500 to another 4 percent decline, triggered by worries that Europe's debt crisis could engulf French banks and spill onto the U.S. financial sector.

Trading was once again marked by sharp moves on heavy volume. For a fifth straight day, the Dow Industrials fluctuated in a range of more than 400 points. Even after Tuesday's snap-back rally, the S&P 500 is down almost 18 percent from its 2011 closing high set April 29.

The Dow Jones industrial average lost 519.83 points, or 4.62 percent, to 10,719.94. The S&P 500 fell 51.77 points, or 4.42 percent, to 1,120.76. The Nasdaq Composite dropped 101.47 points, or 4.09 percent, to 2,381.05. (commentary & photo courtesy of Reuters)

I started off the day buying many of yesterday’s recommendations from RSI. They were all short funds and they were:

• ProShares UltraShort Dow30 (DXD)
• ProShares UltraShort MSCI Japan (EWV)
• ProShares UltraShort SmallCap600 (SDD)
• ProShares UltraShort S&P500 (SDS)
• ProShares Short MSCI EAFE (EFZ)
• ProShares UltraShort MSCI EAFE (EFU)

Yes, I went on a short fund shopping spree. And what a great day the RSI portfolio had today on the market’s plunge.

I have received some inquires about the RSI module that made yesterday’s pick. It is a system that buys the dips based on price excursions. It is fairly simple in concept, but it sure made the right picks. That is, it was right for today but what about the future? From extensive testing, it has a good track record, but it trades quite infrequently such as times with the volatility that we have recently experienced.

There were no RSI buy signals today.