Augie, if there's a reason to compare last year's PPO/MACD to this year's value then the PPO is definitely the better choice since as you point out it's percentage-based & doesn't scale with the value of the index.
The dips in both PPO/MACD reflect the strength of the preceding decline. They appear predictive because these declines were followed by strong rallies. Do you trust this to be the case often enough to use the PPO as an indicator of rally size? I'm not so sure about that one, and I don't recall reading about anyone using that indicator that way. BWDIK.
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