Designer Shoe Warehouse $DSW saw a 16+% surge earlier in the week after a strong earnings report that included strong guidance.Here's a report from thestreet.comM. Corey Goldman 12/11/2018...The company reported net income of $39.3 million, or 48 cents a share, for the three months ended Nov. 3, up from $4.01 million, or 5 cents a share, in the year-earlier period. Adjusted per-share earnings came to 70 cents, ahead of the FactSet consensus of 52 cents.Revenue rose to $833 million from $709.7 million, also ahead of the FactSet consensus of $795 million. Same-store sales rose 7.3% vs. the 5.1% FactSet consensus estimate. The nationwide rollout of DSW kids coinciding with the company's most successful back-to-school season in its history and its acquisition of Canadian-operated retail shoe chain Town Shoes "delivered the best results in the last five years," CEO Roger Rawlins said in a statement. DSW also raised its full-year adjusted guidance to a range of $1.70-$1.85 a share from $1.60-$1.75 a share. It said it now expects revenue to grow 12%-14% in the full year, compared with prior guidance of a 6%-9% gain.(thestreet.com)Despite the positive report, the gains were temporary. If we look at the daily chart, we can see that DSW was already in a bearish breakout ahead of the earnings report. The rally from the earnings report is actually a sign that bears are still in charge.DSW Daily Chart(click to enlarge)Bears in Control:- Price action has been bullish since late August 2017, and peaked just above $34 a share in October 2018 before retreating sharply.- Note that price stalled and traded sideways for about a month but held under $29 throughout that time.- Then after failing to clear back above the 100- and 50-day simple moving averages (SMAs), it fell sharply again, this time breaking below the 200-day SMA as well as a rising trendline support.- Furthermore, the RSI held under 60, which reflects maintenance of the prevailing bearish momentum from October. - Finally, the recent failure of a strong earnings report to pull DSW into a bullish continuation suggests that bears are in control of this market right now. - If we get more evidence of resistance in the $25-$26 area, then the bearish outlook opens up the 2018-low around $18.65, or maybe the psychological level of $20.