I don't think things are going to turn on a dime, and I think people will continue to sell into rallies for some time to come.  Most of the market is going nowhere, and what is working is doing so because of commodities and oil.  We saw the first crack in those sectors Wednesday, although I think it was just people taking profits off the table.  If those sectors, claimed by many to be bubbles, pop near-term, we're in for a wild ride downward!  I think that what you need to keep reminding yourself is that this is a time to be concerned about preserving capital. 

When I was setting up (DOW 13K) for the drop I thought was coming, I believed that it would stop around 12K and planned accordingly.  Now it looks like it will be much worse than that, and I wish I had more cash than I do.  I comfort myself that I'm better positioned than a lot of other people.  What will be interesting is the reaction in the market when the summer ends and the volume rises - Will the returning investors decide to buy, or sell?