The Vanguard S&P 500 ETF (VOO) remains a quintessential pick for investors seeking to mirror the performance of the S&P 500 Index. The ETF boasts a dividend yield of 1.5736%, with a return of 7.15% over the past year, slightly outpacing the SPY's return of 6.52%.
A technical analysis suggests that VOO is currently in a complete impulse wave pattern, having concluded a corrective phase within its smaller cycle structure. The RSI indicator is nearing the overbought territory on the 4-hour chart, signaling a potential minor price retracement in the short term, which is a natural part of the upward trend.
On the daily chart, the MACD indicator has started to rebound from its lows, indicating a reduction in bearish momentum. Additionally, prices have maintained above the 200-day moving average, signaling positive momentum. A weekly chart review clearly suggests an upcoming bullish market reversal within the next year. The first resistance target is anticipated around $515, with a secondary target near $635.78. The diminishing bearish momentum in the MACD indicator, coupled with the RSI breaking above resistance levels, suggests a hold position on VOO would be prudent. The S&P 500's performance in the upcoming period also looks promising.