Thus, despite the equity market's gains today, which have the appearance of a "risk on" environment, bonds are telling us this is a "risk off" environment.
Unfortunately for the bulls, the bonds end up being right. A great example of this is at the beginning of the year's highs, during which bonds diverged from equities and continued to move lower. This divergence was warning us of a market correction:
In fact, bonds have been telling us that this entire rally off the March lows is nothing but a bear market rally because they have in no way confirmed the move:
This is a bear market rally, and don't let anyone fool you into thinking otherwise.