Reversal signs

For a true reversal, I require 4 things in order to short the market. To liquidate, I only require 2 of four:

1) Close below the Exponential Moving Average. DONE!
2) Reversal of volume (ie., volume-based selling) DONE, but somewhat weak.
3) Two consecutive days of lower closes (not yet)
4) Prices must confirm the previous days' price collapse by breaking through the low of the prior day. (ie., price dip must continue over a period of days rather than be a one-day event). Will wait for confirmation tomorrow. Some commodities met this criteria today. Others haven't yet. The Index hasn't.

The New Year may be a factor here. It is the last day of the month, quarter, and year! Funds may be taking profits, only to reestablish positions again once the New Year starts. Should be exciting!

I noticed that Doug Kass shorted stocks today. Stocks have been weak for a week (no pun intended). We need a correction!

Ciao! Prospero Ano Neuvo!!

Steve