Well I hope you know and accept ranking fluxuations and going to be part of yours and everyone life more and more and personalized and regionalized search is introduced on all three major search engines. The days or always being number are already disappearing on Google and I sure the other two search engines will surely follow.
OK with that being said, you obviously moved down while your competitors have moved up in the last Yahoo update. Have you done anything while you were at the top 2 positions to keep yourself there? I would guess to say your competitors have simple done more than you to move up than you have done to keep yourself at the top.
Also maybe the opposite is true. Did you doing any content or design changes that could have coincided with the drop in rankings?
I would suggest go ahead and post some examples of where you have dropped and maybe we can give some feedback on how to improve the rankings for your website.
SE's algorithm change all of the time and so do the SERPs to meet these algo requirements. Nothing out of the norm here.
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