VIX Index Levels Suggest Potential Strong Returns for S&P 500

According to BlockBeats, market analysis from KobeissiLetter indicates that historical data suggests strong returns for the S&P 500 when the Volatility Index (VIX) exceeds certain levels. When the VIX surpasses 28.7 points, the S&P 500 tends to deliver robust returns over the following 12 months. Between 1991 and 2022, when the VIX ranged from 28.7 to 33.5, the average return for the subsequent year was +16%. If the VIX exceeded 33.5, the average return increased to +27% over the same period. In contrast, when the VIX fluctuated between 11.3 and 12.0, the S&P 500's return for the next year averaged +15%. Historical trends indicate that elevated VIX levels often create buying opportunities. The current VIX stands at 23.42.