Yes, that is a symptom of a failed tank. It's pretty easy to check for a failed (bladder type) tank. Take the cap off of the schrader valve (looks like a tire valve cap). Depress the center of the valve. If water comes out, or there's water there, replace the tank. If that appears okay, turn off the pump. Open a faucet. Does the pressure immediately drop to zero? If so, then it is one of two things, a bad tank, or the bladder does not have any air in it. If you tap on the tank after the pump is off and you've opened up a valve, if it sounds like it is full of water it is probably bad. Check the air pressure now. Try to pump it up to 2 pounds LESS than the turn on pump pressure (38 pounds if your switch is set to 40/60). If it holds air, then maybe you are okay. Note, if the tank had water in it, pumping air into it will force some out. You need to have the pump off and a faucet open to charge the tank. I might have forgotten something, but that is it basically. If you can pump it up, and it doesn't leak (it shouldn't have in the first place, so it is probably bad), then you should be back in business. It could be the valve that is leaking, and you can buy new guts to screw in.