I ran a test trial on using VIX on the S&P 500 numbers for 3 years starting Aug 3, 2000.
Suppose we are out of the market and VIX is 22.8 on the starting date. When VIX goes above 35 we buy into the S&P INDEX FUND. When VIX drops below 25 we sell and wait for the VIX to rise above 35 before getting back into the market.
During 8-3-00 to 8-3-03 S&P lost 32.5% Moving in and out with the above trigger points yielded 19.6% gain. Also tried trigger of 30 buy, 25 sell and loss was -3%.
In Yahoo vix symbol is ^VIX. You can go to chart and chart ^VIX and compare to S&P 500 for some time period you choose and see the relationship.
OT. Mowing in the gaps between rains here and grass is growing like mad. It's August and it is supposed to be DRY and HOT. Oh well.