The 30 Year T-Bond futures tumbled back below our downtrend line on Friday as the S&P futures continued their upward momentum. The movement was a strong reversal and the 30 Year futures dipped below March 24 lows.

The futures are recovering Monday morning and are trading right at our downtrend line in reaction to the S&P futures pointing towards a lower open in U. S. equities.

The 30 Year futures continue to show an inclination towards the downtrend since March 18th's historical surge. The weakness in the futures is a bit disconcerting since the Fed's implementation of quantitative easing was supposed satisfy the rising supply and buoy interest rates to keep U. S. debt attractive.

Therefore, investors should keep a close eye on the 30 Year futures since the use of quantitative easing is unprecedented in U. S. history and its ramifications on the value of the 30 Year is unknown.

That being said, we expect to see the high volatility continue while the 30 Year futures lock into their positive correlation with the S&P futures.

Fundamentally, we find resistances of 127.55, 127.83, 128.19, and 128.61. To the downside, we hold our supports of 126.98, 126.69, 126.45, and 126.19. The 30 Year T-Bond futures are presently trading at 127 20.0.

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