Even if we are seeing a lack of follow through after the Tuesday moves, equities are still in a comfortable spot. US futures are little changed and flattish today but it doesn't distract from the strong gains already posted so far this week. All three major indices in the US are up 2% on the week so far. And as mentioned here yesterday, the technicals are still looking good - at least for now.
For now, cautious optimism is still prevailing as market players are sizing up what may happen next in the bond market. The rally there in the past few weeks has been helpful but amid the waves of supply still to come in Treasuries, there is still some deep-seated fear among investors that the selling could return.