Last week started out ugly and only got worse. Notice the breach in the lower trendline (click graph to enlarge) - as resistance in SPY 144 proved to be quite significant. In the absence of great news, the market will continue to focus on the price of oil, inflation, the dollar, etc. See AfraidToTrade for a good analysis on the US dollar index recently rolling over.

Regardless of your outlook, it would be smart to have several longs and shorts on deck. With regards to SPY, all else equal, 132 seems like a likely near-term target, especially with a close below 138 and a close beneath the aforementioned trendline. Later this week (and after seeing how the market returns after the long weekend) I will have some specific trade ideas.