Vanguard S&P 500 ETF remains in a bull market supported by Covid-19 vaccine news

Vanguard S&P 500 ETF is expected to continue to be supported over the long-run and could actually accelerate to the upside this November if the global situation stabilizes. Drugmaker Pfizer announced that it could have a coronavirus vaccine ready in the United States by the end of this year.

Fundamental analysis: Vanguard 500 is expected to continue to be supported over the long-run

Vanguard tracks the S&P 500 and has an excellent reputation among everyday investors who like it’s low-cost funds. Buying into this fund gives you exposure to 500 of the biggest public companies in the United States and it is important to mention that Warren Buffet recommends this ETF.

So it is important to mention that the price of Vanguard 500 is correlated with the S&P 500 and investors in this ETF should also have the S&P 500 on their “watch list”. S&P 500 is trading above 3,500 points and some analysts believe that S&P 500 may start trading even higher in the upcoming days.

Last week, the US stock indices had their best weekly percentage gains since the week that ended April 10. For the week, the Dow Jones advanced 6.9%, the S&P 500 7.3% and the Nasdaq 9% which is its fifth straight session of gains. Vanguard S&P 500 ETF is also supported by the fact that Pfizer and BioNTech announced that their jointly developed COVID-19 vaccine which is effective in more than 90% of the patients.

The US stock market is supported by upbeat over the prospect of a divided Congress and less risk of major policy changes. Joe Biden won the presidential election in his birth state of Pennsylvania last Saturday and become 46th president of the United States.

On the other side, concerns about sluggish economic growth amid the ongoing pandemic continue to dominate the financial markets. The US reported over 130K new cases in one day and the pandemic pushed U.S. hospitals to the brink of capacity.

There are some obvious risks when it comes to trading Vanguard 500 ETF but as long the price of Vanguard 500 is above $300 this ETF remains in the bull market.

As long the price of Vanguard 500 is above $300 this ETF remains in the “buy” zone and there is no indication of the trend reversal.

On this chart, I marked important resistance and support levels. The important support levels are $300, $290 and $280, $340 and $350 represent the resistance levels. If the price jumps above $340 it would be a signal to buy Vanguard 500 and we have the open way to $350.

Rising above $350 supports the continuation of the bullish trend and the next price target could be located around $360. On the other side, if the price falls below $300 it would be a strong “sell” signal and we have the open way to $290.

Summary

Vanguard tracks the S&P 500 and charges an expense ratio of just 0.03% which is very convenient. The price of Vanguard 500 is correlated with the S&P 500 and investors in this ETF should also have the S&P 500 on their “watch list”. S&P 500 remains in a bull market and some analysts believe that S&P 500 may start trading even higher in the upcoming days. There are some obvious risks when it comes to trading Vanguard 500 ETF but as long the price of Vanguard 500 is above $300 this ETF remains in the bull market.

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