Are bond futures ready to sink or take off?

US Treasury Bond futures [ZB & ZN] and the Volatility Futures [VX], have been closely coupled with the movement in the S&P futures for years. With the stock market on a tear in recent days resulting from Chairman Powell's testimony earlier this week and heading into the actual FOMC announcement at the end of the month, what should you expect out of US Treasury futures? We provide a technical analysis for traders in this study while always believing in the popular adage, "when in doubt, zoom out".

In our analysis initially of the 30-Year T-Bond futures, we zoomed out using the 180-day 4-hour chart and find two bottoms in March & April'19 of the June expiration futures. This promts a fib measurement that tells us that the 30-Year Treasury futures remains bullish above 150'07. Into the September contract roll, we have held 151'17 and have not looked back so that still remains a good entry to the long side with a stop at 150'07.

Here is the supporting chart

zb-7-12-19