Had this rally not occurred, there would be no doubt about the stock's bearish conditions. So in that regard, Mr. Dimon seemed to be successful. But the technicals still do not line up in favor of an extended advance.

For argument's sake, let's start with the positive changes on the chart, including what appears to be an island gap reversal to the upside last week. This is a pattern that suggests the tide washed all the way out and then started to rush back in. It begins with a falling trend and culminates with a gap down into what should be a final low.

The day of the final decline typically leaves a small bar, or candle, as there is no follow through beyond the initial decline. The next day, the reverse occurs and the stock jumps, or gaps, back up. The pattern on the chart resembles an island surrounded by water, hence the name.