The 30 Year T-Bond futures experienced profit taking on Thursday, ducking back below our 2nd tier downtrend line as U. S. equities flourished. Despite the decline, the 30 Year futures remain above our uptrend line, and will likely wait to make a serious directional decision when our 2nd tier downtrend and uptrend lines reach their upcoming inflection point. Meanwhile, the futures remain wedged between the trading zone built since February.

However, once the 30 Year futures do make a directional decision, expect large and sudden movements. China is filling the news wire expressing concern over the safety of U. S. Treasuries.

These statements are exacerbating worries of demand drying up, raising interest payments and lowering price. Hence, we see the 30 Year futures on the decline in the near-term. Fundamentally, we see resistance of 127.91 with 2nd tier and top-end hanging at 128.562 and 129.172, respectively.

To the downside, we find supports of 127.422, 127.016, 126.641, and 126.078. The 30 Year Treasury Bond futures are currently trading at 127 13.5.

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