The Dow Jones Industrial Average closed more than 2 percent...

The Dow Jones Industrial Average closed more than 2 percent higher, rallying on news that JPMorgan had exceeded earnings expectations. The response is strange as the New York-based bank reported earnings of $2.37 billion — a fall of 50 percent. And the situation would have been far worse but for a $1.5 billion pretax gain from the sale of its share in the recently listed Visa Inc. (Associated Press). We need to remind ourselves that:

1. this is a bear market;
2. there is strong overhead resistance at the former
3. primary support level of 12800;
sharp rises are typical of a bear market rally — while in a bull market retracements are sharp and prices tend to advance at a more measured pace.






by colin twiggs