Is SP500 Double-bottoming?

Han Tan, the chief market analyst at Exinity Group, said: "Markets are peeking out from behind the risk-off curtain, as sanctions announced by the US, UK, and Europe against Russia didn’t live up to the market’s worst fears."

The daily chart of the SP500 index still looks relatively bullish as bulls have managed to defend the critical support in the 4,280 USD area. Additionally, it now looks like a multiple bottom pattern, which is usually a robust bullish formation.

As long as the price stays above 4,280 USD, the short-term outlook seems bullish, and the index might slowly move higher unless some new bearish information comes from Russia. 

On the other hand, if the situation improves further, traders might start focusing more on the planned rate hikes by the Fed, which should be negative for US equities. US yields are already surging again, pushing the 2-year yield to new cycle highs above 1.62% today.

The first substantial target for the ongoing rally should be at the 200-day moving average, currently seen near 4,470 USD (the green line). If bulls push the index above it, the medium-term outlook could change back to bullish, targeting the 50-day moving average near 4,565 USD (the purple line).