September E-mini NASDAQ-100 Index futures are inching higher on low volume and low volatility late Wednesday. The market is being underpinned by expectations of lower interest rates with the Federal Reserve likely to make a 25 basis point cut in late July.

The day before the U.S. Fourth of July holiday is often the slowest trading day of the year so be careful buying strength or selling weakness. Friday is U.S. Non-Farm Payrolls day, which can be a volatile trading session. However, with the holiday, we may not see a reaction in the markets until Monday or Tuesday.

At 16:07 GMT, September E-mini NASDAQ-100 Index futures are trading 7866.50, up 28.25 or +0.37%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out 7849.75. This puts the market in a position to challenge the April 25 top at 7910.75.

The main trend will change to down on a trade through 7446.25. We’re likely to see a closing price reversal top before we see a change in trend.

The minor trend is also up. A trade through 7609.50 will change the minor trend to down. This will also shift momentum to the downside.

Daily Swing Chart Technical Forecast

Based on today’s price action, the direction of the index the rest of the session is likely to be determined by trader reaction to yesterday’s close at 7838.25.

Bullish Scenario

A sustained move over 7838.25 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to extend into 7910.75 and beyond. There is no resistance over this level.

Bearish Scenario

A sustained move under 7838.25 will signal the presence of sellers. This will put the index in a position to post a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.