To me it means you're still producing insulin and it's trying to be effective but you are probably insulin resistant and your blood sugar is still too high.
Cereals will raise your blood sugar as you can see by your results. Please read the stickies pinned to the top of the Diabetes Forum for more information on what to eat. (In short, the more carbs you eat, the higher your blood sugar will be.)
And here is a site that will give you a lot of information about
blood sugar and diabetes and what normal blood sugar is: http://www.bloodsugar101.com/
Please ask any questions here so we can help you! I'm glad you found HealingWell!