For investors seeking momentum, S&P 500 SPDR (SPY Quick QuoteSPY - Free Report) is probably on radar. The fund just hit a 52-week high and is up 31.20% from its 52-week low price of $348.11/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

SPY in Focus

The underlying S&P 500 Index is composed 500 select stocks, all of which are listed on national stock exchanges and span over 25 separate industry groups. The fund has major allocations to the information technology sector with 28.02% of its assets. The product charges 9 bps in annual fees (See: all the Large Cap Blend ETF here).

Why the Move?

The recent rally on Wall Street can be attributed to increasing consumer confidence and rising optimism for a "soft landing" in the economy. Additionally, the excitement surrounding the potential of artificial intelligence has led to impressive earnings reports from major technology companies like Alphabet and Microsoft, surpassing expectations and bolstering investor confidence and enthusiasm in the market.

More Gains Ahead?

Currently, SPY has a Zacks ETF Rank #3 (Hold). However, the fund might continue its strong performance given a positive weighted alpha of 16.10.