1:09 pm EDT:  What we suspected would happen yesterday happened today.  Though the bid to cover ratio at 2.63 could have been better, non-primary dealer interest (the true guage of an auction’s success) was ~64% (50% is usually considered strong). 

Were the ES in the mid 970′s now, we would be very bearish and calling for a double top.  However, it looks like equities will be able to remain afloat, especially with the aforementioned POMO(A) funny money drop into the markets tomorrow. 

In the meantime, Bernanke has probably bought himself two weeks of long term yield control until the August 12 10 year auction is conducted. 

Everyone’s happy…for now.