The S&P 500 Cap-Weighted Index ((IVV)) held support at the 200-day moving average (at least temporarily) after failing to get back above the 2120 level last week. The index has been straddling between the 50-day and the 200-day moving average for some time now. The S&P 500 is up 2.17% for the year.

The S&P 500 Equal-Weighted index ((RSP)) is set up so that every stock in the index has the same weight, thereby eliminating the market-weighting growth bias. As a result, the index tilts more towards mid-cap and value stocks, which accounts for much of the out-performance versus the cap-weighted index in the last decade. So far this year, the index is up only 0.44% year-to-date, slightly underperforming the cap-weighted index.

One of the themes of the past decade has been growth-oriented, smaller cap stocks outperforming high quality, blue chip stocks. That trend was intact for 2015 until recently, as the bottom has fallen out from under the Russell 2000 index ((IWM)) over the past few weeks. IWM is no longer outperforming the large cap index, and is up only 0.96% YTD.

The S&P 500 versus the Russell 2000 Index, Weekly Chart. It seems that the large cap index has broken out in the past couple of months. A big move was expected, and that is now coming to fruition.

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The MSCI EAFE Index ((EFA)) seems to have turned the corner this year, despite the troubles in Greece and a weakening Chinese economy coupled with a deflated stock market. The index is up  7.99% since the beginning of the year, significantly better than its US counterpart, but not as much as it was earlier in the year.

The MSCI EAFE Small Cap ((SCZ)) has performed significantly better, with an impressive gain of 11.09% for the first part of the year. Unlike the US markets, international small caps are outperforming the large cap index.

EAFE Large Cap Index vs EAFE Small Cap Index, Weekly View. It’s been a steady small cap outperformance since October of last year. The trend may be changing soon though…