The Bernanke generated inflation scare, QE2 based, is probably over. Any owner of commodities would do themselves a favor to have unloaded their position. Stocks are just another commodity in this scenario.
Deflation is still the long cycles direction. Just go to zillow.com and check out the value of your house since December 2007. It most likely will be down 30 to 40 percent and is probably on a recent low.