A more detailed description of this indicator can be found here.
The Risk-Tolerance indicator closed June at .804 with the S&P 500 at $2419.70. The indicator ranges from -1.0 to +1.0 and remains bullish, but down slightly from historical highs.
The indicator is based on the volatility spread between traditionally risky equities, and those considered to be traditionally safe. Positive values indicate that investors are exhibiting a tolerance for risk, while negative values indicate risk averseness in the market.
4-year and 17-year charts of the indicator are shown below, alongside the S&P 500 index.