A proprietary indicator based on the VIX's momentum.
Readings of 20 and below are Bearish (Sub-normal). [0, 20]
Readings above 20, but not above 80 are Bullish. (20, 80]
Readings above 80 are Bearish (Sub-normal). (80, 100)
Expected returns are based on historical data. Past performance is no guarantee that these relationships will hold in the future.
Expected returns are for 1-month and 3-month returns of the S&P 500.
The terms "Bullish" and "Bearish" do not mean that returns are expected to be positive or negative; rather, they mean that returns are expected to be higher or lower than normal. In practice, that really only applies to the "Bearish" term, since stocks returns have historically had a positive bias.