A detailed description of the EQ indicator can be found here.
The EQ Indicator closed February at 0.21, indicating current price levels are on the high side with respect the amount of financial capital flowing into the economy, without much expectation of growth over the next 1-2 years.
The charts shows the EQ indicator alongside the S&P 500 over the past 4 years and 28 years, respectively.
Indicator values below zero indicate the stock market has outpaced new money entering the economy, and the market is in dangerous territory. An indicator value of 1.0 represents the average for the past 50 years, and indicates a potential for average market growth. An indicator of 2.0 and above is a very bullish sign and indicates a potential for above-average market growth.