Vanguard S&P 500 ETF advanced to its record highs. Here are the next targets

By: Stanko Iliev
Stanko Iliev
Stanko dedicates himself to providing investors with relevant information they can use to make investment decisions. He loves the… read more.
on Jul 29, 2021
  • Vanguard S&P 500 ETF advanced to its record highs this Thursday
  • Federal Reserve left the interest rate and bond-buying program unchanged
  • According to technical analysis "bullish" trend remains intact

Vanguard S&P 500 ETF advanced to its record highs above $406 this Thursday and continue to perform well in July’s closing days.

Fundamental analysis: Federal Reserve left the interest rate and bond-buying program unchanged

Vanguard tracks the S&P 500 and gives you exposure to 500 of the most significant public companies in the United States. Vanguard S&P 500 ETF remains supported after the Federal Reserve left the interest rate and bond-buying program unchanged at its meeting on Wednesday.

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Strong corporate earnings also boosted optimism around investors while the U.S. reported this Thursday that gross domestic product increased at a 6.5% annualized rate in the second quarter, and jobless claims fell to 400,000 for the week ended July 24.

“The return of household services consumption, from in-restaurant dining to recreation, was a force to be reckoned with in Q2, responsible for the lion’s share of economic gains for the quarter. While it’s possible the second quarter could indeed mark “peak growth” in economic activity, but it would not necessarily be a “market-shaping event” that investors should fear,” said Michael Reynolds, vice president of investment strategy at Glenmede, in emailed comments.

U.S. Federal Reserve Chairman Jerome Powell said that inflationary pressures are likely to be temporary and concluded that the central bank is still a ways away from considering raising interest rates. Before the meeting of the Federal Reserve, investors have started to behave nervously amid concerns that the U.S. central bank might raise interest rates sooner than previously expected.

Jerome Powell also said the U.S. job market still had “some ground to cover” while the fast-spreading Delta variant of the coronavirus represents an issue for the U.S. economy. Delta is now the dominant variant and accounts for more than 50% of positive COVID-19 samples in many countries, which signals that the battle against the coronavirus is still not over.

Technical analysis: Vanguard S&P 500 ETF advanced to its record highs

Vanguard S&P 500 ETF advanced to its record highs above $406 this Thursday, and for now, there is no sign of a trend reversal.

Data source: tradingview.com

On this chart, I marked important resistance and support levels. The critical support levels are $380 and $360, $420, and $440, represent the resistance levels.

If the price jumps above $420, it would be a signal to trade Vanguard 500, and we have the open way to $440. On the other side, if the price falls below $380, it would be a strong “sell” signal, and the next target could be around $370.

Summary

Vanguard S&P 500 ETF advanced to its record highs in July’s closing days, and according to technical analysis “bullish” trend remains intact. Vanguard S&P 500 ETF remains supported after the Federal Reserve left the interest rate and bond-buying program unchanged, while the strong corporate earnings also boosted optimism around investors.

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