The S&P 500 Cap-Weighted Index ((IVV)) has had an exceptional bounce-back week, albeit on very low volume due to the holiday weekend. The index blew through its 50-day moving average ov=nce it hit support at the 1400 level, and seems likely push through 1475 after testing support at the 1460 level. The index is up 17.30% in the last 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 market-weighting’s growth bias. As a result, the index tilts more towards mid-cap and value stocks, which accounts for much of the outperformance versus the cap-weighted index in the last decade. Based on the technicals, the index also bounced off support this past week, but this time at the 50-day MA. In doing so, it broke resistance at the 54 level on its way to multi-year highs. It’s up 19.15% in the last year.

Given the out-performance of the S&P Equal-Weighted Index, one of the themes for the past six months has been growth-oriented, smaller cap stocks outperforming  high quality, blue chip stocks . That out-performance has strengthened as of late, as evidenced by the recent performance of the S&P Mid Cap 400 Index ((IJH)). It’s up 21.10% year-over-year.

The Russell 2000 Small Cap Index ((IWM)) is also up for the year, at a 19.43% clip.

It’s no surprise that the MSCI EAFE Index ((EFA)) lags behind the world in economic performance, given the well-known and widely-reported circumstances. As a matter of fact, if you watched the news recently, you would think Europe was mired in a depression of epic proportions, complete with a melting-down stock market that was bleeding daily.

What is a surprise is the fact the the index has actually had higher year-over-year returns than the US stock market. It is up over 17.60% in the last year, and technically the also EAFE looks substantially healthier than the US stock market. The index currently sits atop both moving averages, with the slope of both moving averages firmly positive. International markets, specifically Europe, are the place to be.

The MSCI EAFE Small Cap ((SCZ)) has performed slightly better, with a year-over-year return of 19.35%.