It looks like SPX is poised to rebound to 1095-1100. After that I would expect the continuation of the downtrend. If you are looking for longer term investments, Gold is offering some pretty amazing buying opportunity. My bold prediction would be a rise of 20% in the next 2 months.

My advice would be to accumulate position in the 1245-1255 range with the stop below 1235. First target on this move would be 1300-1310. After that I expect a minor pullback a another sharp rise to 1450-1500. That should result in formation of a climax top and a sharp reversal.

Looks like EUR/USD has also put a short term bottom at 1.19. This reversal might take us to 1.2050-1.2070.

Need to watch MACD for any hints on divergence. Also please note that for this case to be valid, we need to stay below 108$ during trading early next week.

Here is another possibility:

This drop in SPY to ~104$ should coincede with the drop of CLF to 44.00 area. This is where I am planning to take some profits off the table. After that I would be looking for a rebound to ~48$ and then another push lower to 38-39.

After a strong close yesterday, the futures made a little pullback overnight, forming a flag formation. I expect we will hit 1090-1093 today. If that level is taken out, next stop is 1105-1110. I would be cautious at this level, and take some profits off the table. Also place tight stops to protect your profits. For those who are looking to place some short bets, look at mining sector.

EUR/USD is also due to a pullback. First target is 1.2420-1.230.

We have got to 1200 by April OPEX, and now we are tumbling heavily. To be honest, I was not sure, that this is going to happen so soon. But here we are – all the gains for 2010 are erased, panic selling everywhere, VIX skyrocketed, investors are scared and don’t know what to expect next.

Guess what happens next couple of weeks?

We are going higher. That is right. I believe we should test 1150 a least, maybe will go as high as 1170. This volatility is great for a skilled trader. For an average investor it is really a mess, so if you are not comfortable trading here – I would suggest reducing you position size.

Check out this echo from 2007 for more clues:

The main levels to look at are 1150 and 20-day SMA. We might get some rise at the beginning of the week, as fund managers will be doing their usual end-of-month window dressing (buying best stocks, selling worst)

Now is a good place to establish shorts at 1160 with the stop at 1163. Target 1150 by Monday.

The index might reverse down to 1140-1130 during the next week. That would be a nice area to establish long positions. A drop below 1130 would make me very cautious if I were holding longs.

The next week is Option Expiration week. Looking for some consolidation in 1160-1140 area. After that another push higher going into April. The major support is now at 1130, so until this one is taken out, the bullish case is alive and well.

EUR/USD is also stuck in the channel. It is finally braking out from the 1.3750-1.3450 zone, where we have been stuck for a month. I would be looking for a small pullback here at the beginning of the week. Then another push into 1.39, maybe 1.40.

Longer term charts suggest that the possible target for this coming reversal is 1.42, after that we will move back down. Though, this is just a pure speculation at this point.