If you remember,
the P Momentum indicator is an series of different rates of change models using a monthly view of the chart that basically determines if the stock market is moving up or moving down. Given all the latest fears about the double dip and the stock market going down to zero, this indicator shows that momentum still is in favor of the bulls and my stance on the long term charts remains correct. Wiht that said, and here somes the "but," momentum is slowing a bit even as the markets bounce higher over the past 6 weeks. This argues that the market needs to get going to the upside sooner than later or the bears will be encouraged to start hammering away. Also, the 18 month ROC is going parabolic which could mean the market slows its rise to unwind this movement.
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