A SPY “double bottom” usually means the chart hit a similar low twice and failed to keep falling, which can signal a possible bullish reversal if price then breaks above the midpoint or “confirmation” level. In plain English: sellers may be losing control, and traders start watching for a bounce.

What it looks like

  • Price drops to a low.
  • It rebounds.
  • It pulls back again to about the same area.
  • If it then breaks higher, traders often treat that as confirmation.

What traders watch

  • The exact support zone, not just one price.
  • Volume on the bounce or breakout.
  • Whether SPY holds above the second low.
  • A break above the neckline/confirmation point.

Important nuance

A double bottom is not a guarantee that SPY will rise; it’s only a setup that suggests a potential reversal. If support fails, the pattern can break down instead.

In forum language

When people say “SPY has a double bottom,” they usually mean:

“SPY tested support twice, and now traders are looking for a reversal or breakout.”

TL;DR: it’s a chart pattern that often points to possible upside if SPY confirms the move higher, but it can still fail.