The shit storm of sellers hasn’t quite passed as Wednesday’s distribution day now makes no. 3 in about a week’s worth of trading.

All of the major indexes and key sectors of retail, semiconductors and broker dealers are testing below their 50-day moving averages. How they bounce, hold or fold here means everything, and will tell us if we need to downshift our bias to Seller’s Edge.

Expect more volatility. The VIX says OEX traders are nervous. They might even get more nervous if we see more of a breakdown from key individual leadership names.

Let’s see how January plays out. Year after year whatever happens this month sets the tone for the year.

Aggressive money has already gone short.