Has market plateaued?

Dow Jones Industrial Average - Google Finance: "10,403.86 -199.29 (-1.88%)"

Market is moving down again for the second straight day. I believe we have plateaued and on the verge of a correction at best or beginning of the so-called "second dip" at worst. The reason I think this is because the market has not reflected true economic condidtions for the past few months. I think it is over-valued by about 2-3 thousand points (that is the Dow Jones). I also believe that investors tend to think this at some level, but have been riding out the gains for as much as possible. But the moment they believe the ride is over, I expect a precipitous drop. But I'm no stock investor and I positioned my 401K to be very safe, for now.

I guess I should mention it doesn't help that China is tightening credit and Obama is talking about punishing the Banking industry.