The Nasdaq 100 / ENQ has traded in a tight range for the entire month of January while the S&P / ES, Dow /YM and Russell 2000 / TF have rocketed higher into or near all-time highs.

In Auction Market analysis we refer to this a Mature Balance Area. Mature Balance ALWAYS transitions into a strong trend, or Imbalance. The signal of an upside breakout is a close above 2753. If the Naz closes above 2753 it should not trade below 2720. If that were to occur it would be a strong sell signal. Conversely, a close below 2701 is the signal of a downside breakout, and if that occurs the Nasdaq should not trade above 2753, and if that were to occur it would be a strong buy signal.

It is going to be really interesting if the break in this market is up. It is unlikely any top in the other indices will form if the Nasdaq blasts out of this increasingly mature Balance Area to the upside. If the break is down it may be the “tell” for a top in the other indices at least of greater significance than any since the December break.