Massive Bull Trap - Nasdaq 100 Index
Updated
The 2022 March low is a massive bull trap, signaled by trend breaks and a monthly RSI divergence. The setup here reminds me of 1987.
Check out the Sqzme DIX index to see the balance of OTC transactions (Over-The-Counter trades, conducted by hedge funds, banks etc).
DIX indicates a bull trap to a scale not seen in over 10 years. Heavy OTC buy-side initiation occurred during the 2022 Feb-March dip, similar to after the Covid low.
DIX has now fallen back to historical averages, without any equivalent sell-side activity occurring. This indicates that a significant number of OTC customers are now trapped in losing positions.
Check out the Sqzme DIX index to see the balance of OTC transactions (Over-The-Counter trades, conducted by hedge funds, banks etc).
DIX indicates a bull trap to a scale not seen in over 10 years. Heavy OTC buy-side initiation occurred during the 2022 Feb-March dip, similar to after the Covid low.
DIX has now fallen back to historical averages, without any equivalent sell-side activity occurring. This indicates that a significant number of OTC customers are now trapped in losing positions.
Note
Not only are OTC buyers still caught in the trap, they bought more!
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