Below is a chart which compares the 10 Year Treasury with the S&P 500. I have previously showed this chart and commented that one markets is going to be wrong. You cannot have both surging equity markets and rising bond prices indefinitely. Why? Because you buy stocks when the economic outlook is favorable, and you buy bonds when the economic outlook is bleak. You can't have it both ways. Bonds are signaling economic problems while the equity markets are completely drunk on QE 2.
Click charts for larger image.
Black Swan Insights