Bond auction soft. Correction in Nasdaq stalls at 50%.

And the tide turns...well a little

In the last hour or so, the US treasury had a sloppy auction with a larger than expected tail in the 10 year auction. The bid to cover was soft as well. Where is the demand at the higher yield? It may not be high enough for investors and that can lead to a move back up. The yield on the bond is now up to 2.84%, up from 2.756% earlier in the day.

Another concern, is that the correction off the low for the Nasdaq composite index stalled right around the 50% retracement at 7156.29. The index is now trading at 7080 down about -35 points on the day.

If yields do continue to go higher, the move in stocks may turn back to the downside (or that has been the reaction of late).