Some call it the "Google Dance" but how long does the dance take? When will the music stop? like for e.g a site vanished for a month and was not in top 200 results but today just this site got back again and it was #5 in SERP's in its main keyword but when i rechecked later today its position was gone again? Why does it keep bouncing? when will it end? its like google is being a prima donna
You just have to wait and watch. You can wait for a few weeks and then without delaying further start your disaster management process. Try and figure out what went wrong and then check if your site has been penalised. There's no definite duration for the Google dance to stop. So, wait for a while and then search for crisis solutions.
I also faced the same problem a month back. Then I found what went wrong. I had submitted 6 articles in just 3 days in 50 article directories each and the problem started. I stopped off page work for next 15 days and my site again come to the 3rd page from the first page. My website is new just 8 months old and i tried to make many backlinks as soon as possible. So it was the reason of penalty. So take some time and try to find what exactly wrong happened and try to find out the solution.
Google "dance" all the time, if dance do exist. Since caffeine, google does not have a solid data in all data center any more. All data center, even the different server in a data center has different data, so you will get different result all the time.