We can get an idea of whether the S&P 500 is in or about to enter a dynamic TREND phase...or if it's just in a long term sideways trading phase. For about the last year, there has been no real trend for the S&P--this is one reason you might experience a lot of volatility, but seemingly no real direction in things. A reading below 10 on the ADX-52 is a sign of no trend, but also, most powerful trends are born in such periods of directionless volatility or periods of complacency.
Words to the wise: as of July 2012, the ADX is well under 10, but don't assume that the next big trend will be very bearish...ADX does not predict from such a low number which way the market will turn. It could easily begin a very strong bullish trend as well.
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