Guesstimates on December 27, 8:36 am ET

Spiders - March S&P E-mini Futures: Last Friday’s price action completed a well formed and very unusual “island” reversal in the e-minis using only regular hours trading data. I think this means that the 1446 low last week ended the drop from 1537 in the March contract. Support beneath the market is at 1480-45. I think the market has begun a move to 1600 and above. I plan to be a buyer near support in the 1480-85 zone but I’ll let you know when I put in my orders.

QQQQ: The Q’s are headed for 54.20 and eventually to the 60 level.

TLT - March Bonds: Resistance above the market is at 116-24. I think that a drop of 7-10 points is underway. TLT is headed for 87.

March 10 Year Notes: Resistance above the market is at 113-16. I think the notes have started a drop of about 5 points.

Euro-US Dollar: I think the euro is establishing a long-lasting top. I think this market is headed for 139.00 before a substantial rally can begin.

Dollar-Yen: I think the yen is headed upward in a multi-month move. Initial upside target is 117.00. Support is at 109.50.

XLE - OIH - USO – February Crude: The market is headed for 79.50. Crude has reached 96.50 resistance and the downtrend should now resume. USO should drop to 56, OIH to 140 and XLE to 60.

GLD - February Gold: I still think gold futures still have a shot at the 873 level but a drop below support at 780 will mean that an extended decline has started.

SLV - March Silver: I think is now is likely that the 1644 high in March silver will hold and that an extended decline has begun. The current rally should halt at a lower top near the 1570 level.

Google: GOOG is headed for 760.