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Vanguard S&P 500 ETF price forecast ahead of U.S. job report

By:
on Oct 31, 2021
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  • FED will announce its decision on monetary policy
  • The U.S. will publish the job report on Friday
  • Vanguard S&P 500 ETF advanced to its record highs

Vanguard S&P 500 ETF has been moving in an uptrend since the beginning of October 2021, and according to technical analysis “bullish” trend remains intact. Vanguard S&P 500 ETF advanced to its record highs above $422 on Friday even as rising labor costs and elevated inflation continue to worry investors.

All eyes on FED

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 research company Refinitiv reported that third-quarter S&P 500 earnings should show a 34.8% rise from a year ago.

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Strong corporate earnings boosted optimism around investors, and results from many big companies provided a strong start to the last quarter of the 2021 year. On the other side, the rising inflation, together with the world’s supply chains crisis, became a concern for investors.

Several FED officials also expressed concerns about high inflation, which could force the U.S. central bank to raise rates sooner than anticipated. The U.S. Federal Reserve will announce its decision on monetary policy on Wednesday, and according to estimates, FED will announce the tapering of its $120 billion in monthly bond purchases.

Fed Chair Jerome Powell said that the U.S. central bank is “on track” to begin reducing its assets purchases, which should be a step before lifting interest rates. A hawkish turn should positively influence the U.S. dollar, but besides this, some investors view the Fed’s stance as a vote of confidence for the U.S. economy.

The upcoming week will be busy; the U.S. will publish the official ISM PMIs and ADP survey, while the October Nonfarm Payroll report will take center stage.

The U.S. will publish the Nonfarm Payrolls report on Friday, 05th November; the U.S. economy is expected to have added 385K new jobs in November, while the unemployment rate should be steady at around 4.8%.

Vanguard S&P 500 ETF advanced to its record highs

Vanguard S&P 500 ETF advanced to its record highs above $422 on Friday, and according to technical analysis, bulls control the price action.

Data source: tradingview.com

On this chart, I marked important resistance and support levels. The critical support levels are $400 and $380; $ 430 represents the resistance level.

If the price jumps above $430, 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 $400 support, it would be a strong “sell” signal, and the next target could be around $380.

Summary

Vanguard S&P 500 ETF advanced to its record highs in October’s closing days, and according to technical analysis “bullish” trend remains intact. The U.S. Federal Reserve will announce its decision on monetary policy on Wednesday, and the U.S. will publish the Nonfarm Payrolls report on Friday, 05th November.