1:12 pm EDT:  In the auction, bid to cover ratio at 1.92 and foreign interest at about 35% is disappointing for Treasuries.  And, though long term yields shot up on the announcement as expected, the ES has headed lower into support.  Support should hold and allow the ES to head higher and break resistance at 973.00.  If the ES makes new lows and gets below 865, we suspect there is something else going on and must conclude that today’s auction was not as important as we thought.  Perhaps tomorrow’s 7 Yr will be the real shocker.  Still have Beige Book at 2:00 pm and the POMO close to consider.