Well on the very short term, stocks and bonds are still moving in the same direction. However, on a bit longer time frame, bonds are posed to break out. This probably indicates stocks are more likely to go down after this short-term pop.
Let's see how things will eventually work out, by starting to look at bonds:
We can now start a long position in ZB given the confirmation by ZN.
We are still waiting for the stocks to form a good bottom ... the momentum has reduced on the 4h charts, but whether they will continue down or reverse remains to be seen.
Overall, the market is still bearish except the relatively stronger AUD. Today's news in China further support the bullish move in AUD. So will China lead the rest of us out of the correction this time? Or maybe Spain will eventually ask for a bailout? These are the macro driving forces in the weeks to come that will favor bulls.