10:48 am EDT:  New home sales disappointed a bit and Goldman lowered its estimate for tomorrow’s GDP, which lessens the likelikhood of short covering ahead of the report.  We’re still mildly short term bullish today as long as the S2′s hold at 1049.75 (actual low 1051.00), but would be quick to cover if the market retraces up to the 1059 to 1064 heavy resistance area.  If the S2′s break, the next downside target is very strong Fib confluence at 1043.75 to 1045.25.  Yesterday’s 2 Yr auction ended up being a market mover, so even more attention will be focused on today’s 5 Yr at 1:00 pm and caution is urged around that time.