Valencia Floods - Should I cancel my trip?

It was a major storm. (did not really hear about it in North America).

I would expect that in a couple of weeks everything will be back to close to normal in the major cities and villages. Snow will melt away, flooded areas will be cleared of trash and detritus.

Weather wise, it seems to be nice now and long term forecast show regular nice weather.

I'd wait a few days before deciding; look at the local Spanish news, check (call/email) on your hotel.