Downside target for Euro and S&P 500

The recent call on the market and the Euro has been correct with the S and P 500 dropping to the 1290 area and the Euro now below $1.24 to the U.S. Dollar.  I expected a bounce at 1290 and that happened while I was away.  The S&P 500 appears to have more downside directly ahead to a target of 1213.  The Euro is completing a five wave down structure looking at a target of $1.19.
From these levels, a bounce should occur leading the S&P 500 to a .618 bounce to the 1344 level. The Euro should retrace at least .382 to around the $1.29 area.
The headlines are troubling with major banking liquidity issues in Spain along with government bond yields now over 6.68%.  In Italy 10 year yields are now back over 6%.     

Spain and other Europe Events

With Spain now officially in recession and another domino falling with the events is the Netherlands, it is amazing to me the Euro is not trading 1 to 1 with the U.S. Dollar.  While in the near-term the U.S. economy appears to be holding up better, the outlook appears dim in the E.U. as citizens will need to decide on some tough economic measures to insure the currency survives in the present form.  With unemployment over 25% in Spain, and with youth unemployment running double that rate the country looks poised to join Italy as the next major dominos to topple over in the E.U.  How can I forget Portugal? Stay tuned.