That looks better.
Deselect the selection by hitting Ctrl-D.
Click on the Red Copy Layer.
Merge Down.
From the menu Layer>Merge Down or Ctrl-E.
Lets do that for the Blue layer now.
Drag the Blue layer to the new layer button in the Layers pallet to copy it.
Ctrl-Left mouse click the Blue copy layer to put a selection around it.
From the menu Select>Modify>Contract.
Choose 2 pixels click Ok.
From the menu Select>Feather or. Alt-Ctrl-D.
Choose Radius 1 pixel.
From the menu Filter>Render>Difference Clouds.
Set the Blending mode to Multiply from the drop down menu on the Layers Pallet.
Move the Fill Slider to 30 percent.
Deselect the selection by hitting Ctrl-D.
Click on the Blue Copy Layer.
Merge Down.
From the menu Layer>Merge Down or Ctrl-E.
Now if everything went according to plan, you should have 4 layers all together.
Red, Blue, Base, and Background.
See image.

Light reflection.
Ctrl-left click on the Red layer in the Layers pallet to put a selection around it.
From the menu Select>Modify>Contract.
Choose 2 pixels click Ok.
Create a new layer by clicking on the new layer icon in the Layers pallet.
Name it Reflection.
Select the Polygonal Lasso tool from the tool bar.
Up in the Options Bar click on the third icon from the left. So you subtract from the layer.
Using the lasso start by creating a shape seen in the image.
See image.

Create the shape as seen all the way around the shape until you get back to the point where you started.
Click on the starting point and you should get a shape as seen in the image.
This might take some practice to get it just right. Keep trying until you get it.
See image.

Now to contract again.
From the menu Select>Modify>Contract.
Choose 3 pixels click Ok.
From the menu Select>Feather or. Alt-Ctrl-D.
Choose Radius 1 pixel.

Set the default colors by
Hit D then X on the keyboard.

Hit G to select the Gradient tool.
On the Options bar, click on the downward facing triangle to edit the gradient.
Choose the second gradient from the left. Foreground to Transparent.
See image.

Drag the gradient from right to left through the newly created shape.
Give it a Guassian Blur.
From the menu, Filter>Blur>Gauassian Blur.
1 Pix. Ok. You might want to do this a few times.
See image.

Select the Red layer and then from the menu Layer>Layer Style>Bevel and Emboss…
Set the settings as seen in the image.
Depth 31.
Size 24.
Highlight Mode Opacity. 100.
See image.

The Rest is up to you. Add more light Reflections to the Red and Blue layers and be sure to Bevel the the Blue layer. Put a white stroke around the Base and give it a drop shadow. Don't forget the Bubbles.