Today's Stock Index to Watch | A Look at the Best Stock Index to Watch for July 31, 2012

This is James Hyerczyk with today's Autochartist (http://www.autochartist.com) Stock Index to watch for Tuesday, July 31, 2012.

Last week's rally in the global stock indices has put the E-mini NASDAQ 100 in a position to breakout to the upside, making it the stock index to watch today.

Currently, the E-mini NASDAQ 100 stock index is in a position to breakout through the resistance line of a triangle chart pattern on the 1440-minute chart. Besides the resistance line, the index is also in a position to take out a previous major top at 2658.00. A move through this level is likely to trigger an acceleration to the upside.

Technical analysis of stock index trends indicates that the overall quality of this chart pattern is an average 5-bars. The initial trend which measures the strength of the trend prior to the chart pattern's formation is an impressive 8-bars. The initial trend is up as is the expected breakout so the expected trend change is a continuation.

Choppy trading conditions may have negatively affected the uniformity and clarity ratings. The 4-bar uniformity rating suggests the absence of equidistant tops and bottoms. The slightly below average clarity rating indicates that this may be a "noisy" pattern because of the number of price spikes.

Our technical analysis of stock index chart patterns has determined that the triangle chart pattern is a non-trending pattern. The highlight of the chart pattern is the compression of the support and resistance lines which often indicates impending volatility. Because of several weeks of price compression, the E-mini NASDAQ 100 may be poised to make a volatile breakout to the upside. This why it is the stock index to watch today.

This has been James Hyerczyk with the Autochartist Stock Index to watch for Tuesday, July 31, 2012. http://youtu.be/EzeXLFdpF9E

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