The Standard & Poor’s 500 is a stock market index based on the common stock prices of the biggest 500 publicly traded American companies. The index, which is up 13.67% for the year, looks ready to retreat to the 1390 level, and maybe further down to 1375-1380 level after a slight rebound following Bernanke’s Jackson Hole speech.
The S&P 500 Value Index, which consists primarily of US large-cap value stocks in the financial services, industrial, and consumer cyclical industries, tend to have lower price to earnings ratios and higher dividend yields than average. The index has performed slightly worse than the overall market, posting a YTD gain of 12.16%.
The S&P 500 Growth Index, which consists primarily of US large-cap growth stocks in the tech, healthcare, and energy industries, tend to have higher earnings growth rates, higher earnings multiples, and little or no dividend yields. The index is the best performing of the bunch, returning 14.43% for the year.
The MSCI EAFE Index, a global developed market index that encompasses Europe, Australasia, and the Far East, seems to have established a bottom. It currently sits at support at the 51 level, but seems likely to test the 50-day moving average at 50.30. Technically, the index is forming a Golden Cross, which is when the 50-day MA is about to cross over the 200-day on its way up. The EAFE is up 6.67% YTD.
The MSCI EAFE Value Index, which consists primarily of low P/E international large-cap value stocks in the financials, energy, and communications industries, also finds itself at support. The Value index has slightly under-performed its parent index, returning 6.46% for the year.
The MSCI EAFE Growth Index, which consists primarily of high-growth international large-cap growth stocks in the industrial, healthcare, and consumer cyclical industries, is technically better off than the value index. It is up 7.88% in 2012.