Charts Predict: New Lows Coming for the S&P

A day after Obama's stimulus plan was passed in the senate and the Dow dropped 4.6 percent, the S&P 500 is heading to set new lows, Chris Locke from said Wednesday.

"The S&P 500 will eventually set new lows," Locke told CNBC. The index will likely be weak for the next few days and then rally at the end of February and beginning of March, Locke said.

"Consolidation could continue for a while, ultimately though, the bear will return quite heavily as 2010 approaches," he added.

"The euro has had a good correction against the pound," Locke said. "Sooner or later, the euro will gain parity against the pound, so the pound is looking extremely weak."

"Gold has been firm against platinum and silver, and has led the way out of the precious metals," Locke added. Nonetheless, gold right now is 80 times the price of silver, but Locke said he feels that the market will drop to 50 times the price of silver, making silver a "play for those that have missed gold, or those that feel gold is too expensive."