I am not familiar with this method of testing, so I am only interpreting your results.
It seems to me you have two problems. But first, is the rod only 14mm long, did you make a mistake, is it 14cm?
I am trying to imagine the axis of the spindle, it has a theoretical alignment to the column. But is seems that the axis has an actual wobble that is much bigger than the alignment error to the column.
I suggest before working on the alignment, look into the causes and fixes of the wobble. Make sure the bearings you just replaced are correctly installed. Make sure the collet in the spindle, that holds the rod, is accurate also. It will be very difficult to get good machining results with a spindle wobble that you described ( assuming the rod is 14mm long).