Uh oh!! That's what a LOT of people are asking themselves tonight after jumping on this rally yesterday and getting beaten like a rented mule today. In truth, the decline wasn't that surprising in and of itself. The market was VERY overbought in the short term. However, the severeness of the decline was surprising in some ways... and in some ways not. The financials had bounced unbelievably in one of the largest short squeezes in recent memory. The BKX (banking index) had bounced roughly 50% off it's low of $46.52 to over $70 in a few days. Giving some of that back was inevitable. That led the entire market down today and as weak longs were quick to throw in the towel the decline accelerated into the close. Now what happens? If the BKX breaks below $60 again it'll suggest the S&P may retest 1200. If that doesn't hold....then I'd be out. Nobody said this was easy! Let me just add that 1200 better hold....for now at least. I don't mind it giving way eventually. In fact I expect it to. But...if it caves in here in the next few days after the readings we saw last week...we might need a new mule.