Wall Street Sees Key Pattern in S&P 500, Bullish Period Coming?

Year-to-date, the S&P 500 index (^GSPC) is down 4.4%. The US stock market has been in a teetering period all year due to various economic concerns. While the biggest stocks out of the index have struggled to start 2025, other smaller companies are improving a bit. Analysts on Wall Street are looking for indicators of the S&P 500 index reversing its bearish period, and one analyst may have found one.

During Monday’s trading session, after tumbling early in the day as traders eyed the upcoming April 2 tariffs, stocks staged a rebound, with the S&P 500 rising slightly after falling more than 1.5%. This type of pattern often marks the end of a downtrend and the beginning of a new uptrend. Thus, investors are looking at a massive market rebound coming soon.

According to Craig Johnson, chief market technician at Piper Sandler, a double bottom could be forming in the S&P 500, with the second bottom seen in Monday’s session. The trading activity signals to Johnson that stocks could be setting up for a reprieve heading into the seasonally bullish month of April. “With total weekly trading volume tapering off below its 10-week average, it feels more like just a ‘half-court press,’ with investors awaiting the tariff announcement on April 2,” Johnson wrote in a note on Monday.

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While the S&P 500 rebounded on Monday, it still ended a brutal March near its lows of the year. The broad benchmark wrapped up its worst first quarter in three years thanks to trade-war fears. However, this new pattern could send bullish gains through the S&P 500 index.

US President Donald Trump is set to announce “country-based” tariffs during a Wednesday appearance in the White House Rose Garden. The affect these tariffs have on the index may dictate how it performs over the next several months. The tariff talks have already hit big-tech hard, especially in the automotive industry.