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 about 28.2% from its 52-week low price of $233.76/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 on where it might be headed:

SPY in Focus

The underlying S&P 500 Index is composed of five hundred selected stocks, all of which are listed on national stock exchanges and span over 25 separate industry groups. The fund charges 9 basis points a year in fees (see all Style Box - Large Cap Blend ETFs here).

Why the Move?

The S&P 500 hit a 3,000-mark for the first time as the Fed chief Powell gave cues of a rate cut. Powell acknowledged the downside risks emanating from trade disputes, softer international economic activity and weak U.S. inflation. All these threats may compel the Fed to cut rates ahead. So, possibilities of more months of cheap money inflows took the S&P 500 to that height.

More Gains Ahead?

Currently, SPY has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. Also, the fund has a positive weighted alpha of 9.70. So, there is definitely some promise for those who want to ride on this ETF a little longer.

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