The S&P 500 short term is in the same condition it was as described in my last post.  This time, I’m showing on this chart how I use what I call Calibrated Curves, a subject that I’m devoting a whole chapter to in our upcoming book.

Compare this chart here with the one in my last post.  You’ll see that, in addition to Midas curve S1 there is S1 Calibrated; and S2 has been removed and replaced by S2 Calibrated.  Over the 15 years that I’ve been practicing the Midas method, I’ve observed that when a support (or resistance) curve does not capture a major pullback in price, one should move the starting point of that curve so that it does capture it.  Thenceforth, the new curve, called a Calibrated Curve, is very likely to capture important future pullbacks.  The two calibrated curves shown here have had their starting points moved in order to capture the pullbacks indicated at the little green arrows.  I will keep these curves on the chart as we go forward from here.

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