Arsenal are now nine points behind leaders Chelsea, with the two Manchester clubs improving all the time.
Arsenal's 2-1 home defeat, although not ideal, may not look like the end of the world for the Gunners, with the club sitting third in the League on goal difference.
When you consider their fixtures in the short term though, one may get the feeling that their season could fall away at the most crucial point once again. The ongoing speculation around the futures of star players Ozil and Sanchez also cannot be doing the club any favours on the pitch, with some fans hoping those deals would be completed in January.
Arsene Wenger's side face consecutive away trips to Chelsea and Liverpool in the league, either side of a home fixture against Hull. Add to that the two legs of their Champions League tie against Bayern Munich in the same period and you get a feeling for how important the month of February and early March will be.
That Chelsea match, up next on Saturday 4th February, could prove crucial in their season. Chelsea, already nine points clear and 2/7 to win the league, would stretch their lead to twelve with a win and surely put Arsenal out of the title race.
With Liverpool and the two Manchester clubs hot on their heels as well, Arsenal would be back competing for a top four place once again, as opposed to challenging for the title. By the end of tonight there could be only one point separating Spurs in second and Man City in fifth, with Man United only a further two points behind.
On the flip side, the Gunners could put a real marker down by beating Chelsea, Bayern Munich and Liverpool but they've put themselves in a position of such fine margins when well set once again. That loss to Watford is something the club didn't need and may hint at the mental frailties talked about at the Emirates time and time again.
