🚨 The answer is always in the dark pool.
The Dark Pool Index, DIX, went off the chart and dropped to its lowest historical level since June 3.
DIX measures institutional dark pool buyer intent, meaning off-exchange accumulation signals. Basically, it shows the buy vs. sell imbalance in dark pools, especially when it aligns with a low DPI, which measures institutional dark pool pressure, or volume intensity versus the recent average.
We are not seeing a rebound, so the current phase looks more like exchange manipulation while institutions are not buying.
And “they are not buying” is a much stronger statement than “they are selling.” Institutions rarely sell aggressively. More often, they simply stop accumulating.
The dark pool is pointing to a potential price drop in the near future. Currently, we are seeing a divergence in volume.
We are not getting a clean sell signal yet as you can see the "Time Dilation" is in favor of the bulls, but low conviction in the dark pool is not good for equities.