It appears you are not alone. A couple months back (when the DJIA was at 10,950) I went 95% cash. I missed the move to over 11,000, but that doesn't matter anymore. I hesitantly got some NM in the low-mid $5s and still have it. When the time is right, I'll probably average down my NM. Where? Not sure. I agree, the entire market smells bad right now.
I've watching Bruce Moschella's analysis over the past couple of weeks. He was calling the 100 pt. drop in the S&P pretty closely. He has moved short on the overall market, buying BGZ (tripple bear). He targets 950 on the S&P as a cover point. With Spain downgraded today, the Fed financial overhaul, and the Administration/Democrats showing distinct signs of fear, I'm beginning to feel the double dip is already in the cards. If I'm correct, that means the next time to get NM will be below $2.