What Is the Dark Pool Index (DIX)?
The SqueezeMetrics Dark Index (DIX) is a dollar-weighted aggregate of Dark Pool Indicators for S&P 500 components, based on off-exchange short-volume data.
DIX is a published market-level indicator from SqueezeMetrics. It is not the percentage of prints trading above the bid-ask midpoint, and a reading of 50 is not proof of balanced institutional buying and selling. To interpret it, distinguish the public aggregate from a single-symbol indicator and read the provider’s methodology and data date.
Start with the publisher’s definition
SqueezeMetrics defines the public DIX as a dollar-weighted aggregate of Dark Pool Indicators for S&P 500 components. This aggregate is different from a ticker-specific short-volume ratio, a quote-based side classifier or a cumulative volume-delta series. Do not substitute one dataset while retaining the DIX label.
Why short volume enters the methodology
The SqueezeMetrics documentation describes its ticker-level D measure using off-exchange short volume relative to corresponding total volume, with missing-value handling, smoothing and a reporting lag. The interpretation relies on liquidity-provider behavior: a short sale can facilitate a customer purchase. That is a model of activity, not a direct disclosure of an institution’s net position. Daily short-sale volume also differs from outstanding short interest.
A threshold is a hypothesis, not a measured success rate
A high or low reading can be compared with the same series’ documented history. It does not establish that a fixed percentage of institutions bought or sold, nor that a price move will follow. A strategy test needs the series as it was available at the decision time, explicit entry and exit rules, costs, a benchmark and out-of-sample results. This page supplies no measured win rate or personal trading record.
Check dates, revisions and coverage
Record the observation date and publication time separately. A historical session label does not prove the data was available during that session. Smoothing, missing-data treatment and revisions can change comparisons. The S&P 500 aggregate cannot be interpreted as a complete picture of all stocks or all institutional positions.
DIX, CVD and midpoint labels answer different questions
A signed-volume series accumulates volume under a specified trade-classification rule. A midpoint label compares a print price with a supplied quote midpoint. DIX uses the publisher’s short-volume methodology and aggregation. Differences between these measures can arise from construction and coverage, so apparent agreement is not independent proof of a forecast.
What Pineify currently provides
Pineify’s Dark Pool view shows available provider transactions, summary counts and notional size categories. Its buy/sell labels compare transaction price with the supplied NBBO midpoint. The current view does not publish SqueezeMetrics DIX, ticker DPI, point of control or cumulative volume delta. Use the publisher’s dated series for DIX and keep it separate from Pineify’s transaction observations.
Primary sources
Use the SqueezeMetrics DIX page and methodology documentation. FINRA OTC transparency data provides separate ATS and non-ATS context; it is not a replacement DIX series.
FAQ
Frequently Asked Questions
What is DIX?
SqueezeMetrics’ public Dark Index is a dollar-weighted aggregate of Dark Pool Indicators for S&P 500 components.
Is DIX calculated from trades above the NBBO midpoint?
No. That is a different classification method. SqueezeMetrics’ documented indicators use off-exchange short-volume data.
Does DIX above 60 mean 60% institutional buying?
No. The indicator is not a direct census of institution purchases or net positions. Interpret it using its documented construction and history.
Does a low DIX guarantee a decline?
No. A threshold by itself does not establish a reproducible forecast or a tradable advantage after costs.
Is short-sale volume the same as short interest?
No. Short volume counts qualifying transactions during a period; short interest concerns outstanding short positions at a reporting point.
Can I backtest a published historical series without timing adjustments?
Check publication availability, revisions and lag first. Using information before it was available introduces look-ahead bias.
Does Pineify include DIX or CVD?
The current Dark Pool view does not publish DIX, DPI or cumulative volume delta. It provides transaction records and derived midpoint-based side and notional size labels.
Where should I get the latest DIX observation?
Use the SqueezeMetrics publication and check its displayed observation date. This educational page does not supply a live DIX value.