I am certain that there is something horribly wrong with going short here, but I can't seem to find what that is.

It seems significant to me that each of the top four distrbution days of the last three weeks has come in higher volume each time. 

Today the vast majority of the William O'Neil screen volume leaders are down over 1%. http://screencast.com/t/L0V5nBcQYV8w

The up on volume screen is pretty thin. http://screencast.com/t/X6jpELr4Vq