Stock Market Update

[BRIEFING.COM] There has been a turn in the market in the early afternoon trade, and the turn has been lower. Can't blame the $44 billion 7-yr note auction for that either, as it was met with strong demand, just like the 2-yr and 5-yr note auctions were on Monday and Tuesday, respectively.

Today's 7-yr note sale drew a high yield of 4.194%, which stopped through the when-issued yield by nearly a basis point. The bid-to-cover ratio (2.64x) was above average (2.59x) while indirect takedown (66.1%) was a bit below average (71.0%).

The retreat in the stock market was expedited by a pullback in the mega-cap space and the breach it caused at the 50-day moving average (6,005), which had earlier pivoted from resistance to support.

The Vanguard Mega-Cap Growth ETF (MGK), up 1.5% at today's high, is now up just 0.6%.