Michael Ballack says Barclays Premier League leaders Chelsea will recover from their defeat to Manchester City.
Carlo Ancelotti's side lost 2-1 at the City of Manchester Stadium on Saturday evening thanks to Carlos Tevez's winner.
Frank Lampard had a chance to secure a draw, but saw his second half penalty saved by Shay Given.
The defeat was Chelsea's third in the league this season and Ballack believes his team-mates will respond positively, as they did following the losses to Wigan Athletic and Aston Villa.
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The Germany international thinks the result signals City's intent to mount a serious challenge for the title following a string of disappointing draws.
strong team
"We bounced back after defeats to Wigan and Aston Villa and we must do it again," said Ballack.
"We could have got a draw if we'd scored from the penalty spot and that would have been a good away result.
"Even after that we had a good chance to equalise, so we have to take some positives from the game.
"We're disappointed to lose but we have to remember the good things - the way we fought back and the fact we deserved a draw.
"We respect every team behind us and we've lost against a strong team. It looks like City are ready to fight for the title.
"I don't know what their target is but they showed against us that they have a good team and with a bit of luck they can beat sides like us.
"They've spent a lot of money, and they have a lot of good players, so it's not a surprise. But even if you spend a lot of money you have to go step-by-step."
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