Probable Bottoms - Wolfe Wave and Supports

As expected, the markets have tumbled over the last week. All markets, with the exception of China, have really taken a beating with the US, FTSE, Bovespa and Nikkei taking a pounding through out the week. The Sensex and Hangseng held out till the middle of the week before going down.

Now we can do a calculated guess on the probable bottom scenarios for the markets using a combination of Wolfe Waves and prior supports. Pls note that this is an academic exercise. This week should be slightly quiet and might end up flat or slightly in the green.

The targets are indicated in the charts with the Pink Circle.

DOW:
The Dow looks like it should bottom around 12750(which is the prior top) and the Wolfe Wave coincides nicely with this as a bottom.



S&P500: The S&P500 closed the day at the prior top around 1460. We need to go slightly lower to get the next support around 1410 and the Wolfe Wave targets coincides around this target.



FTSE: The FTSE has already taken a severe pounding this week. At 6200, it might be close to its bottom though we might see some further downside. If this breaks, the next support should be around 6000.



Sensex: The Sensex held its downside for most of the week. But all this was wipred out on Friday. Opening with a 300 point gap down, the Sensex closed the day almost 600 points down. The probable target for the Sensex is around 13500, where the Wolfe Wave meets with the prior resistance.