Just when the markets seemed to find their footing, fresh tariff tensions have re-entered the scene — and the S&P 500 is showing signs of stress. With volatility creeping back and investor sentiment turning cautious, the question on many traders’ minds is this: are we about to revisit the recent lows… or worse?

Historically, double bottoms form when a market tests its previous low, shakes out the weak hands, and either rebounds or breaks. But in this case, global macro conditions aren't making things easy. Tariff battles, especially between the U.S. and China, are flaring up again, and this time they’re hitting sensitive sectors like semiconductors, EVs, and tech hardware — the very pillars that propped up recent market gains.

Earnings season has been a mixed bag, inflation prints remain sticky, and the Fed still hasn’t committed to a timeline for rate cuts. Add in the uncertainty of the U.S. presidential election and the rising cost of goods due to trade barriers, and the S&P 500 could be set up for another leg down.

Technically, if the index fails to hold key support levels near its February lows, a retest becomes likely. And if that retest happens in the context of declining breadth and weak volume, it could confirm a double-bottom pattern — or even morph into a breakdown.

For cautious investors, this isn’t the time to chase rebounds blindly. Patience, risk management, and a clear view of macro trends are essential. A second dip could offer better entries, but only if market fundamentals improve. Otherwise, the S&P 500 might not just double bottom — it could dig deeper.

So is the double bottom on the way? The setup is forming. Now it's a question of whether tension escalates — or relief comes fast enough to prevent a slide.