After a scorching start to the year, the S&P 500 Cap-Weighted Index ((IVV)) finally pulled back some, a week after setting all time highs at the 1687 level. With this weekend’s release of dismal China PMI data, it seems likely that the index will continue the momentum downward to its 50-day moving average at the 1600 level.  The Purchasing Managers Index came in at 49.2, below the 50 level that indicates expansion or contraction and the worst level in a year. The S&P500 is up 15.33% for all of 2013.

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 out-performance versus the cap-weighted index in the last decade. Since breaking resistance at the 54 level, the index has also been on a tear, reaching all-time highs until this past week. It’s up 17.20% year-to-date.

Given the out-performance of the S&P Equal-Weighted Index, one of the themes for the past few years has been growth-oriented, smaller cap stocks outperforming  high quality, blue chip stocks . That trend has is also evident in the performance of the S&P Mid Cap 400 Index ((IJH)). It’s up 16.71% YTD and didn’t fall as violently as the S&P500 index in the last week.

The Russell 2000 Small Cap Index ((IWM)) is also outperforming for the year, up 16.32%.

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.What is a surprise is the fact the the index actually out-performed the US stock market in all of 2012, and even started the year off on a good note before staggering since February. It now finds itself below its 50-day moving average and under critical support after a rough week across the pond. It’s up only 5.65% year-to-date, less than half that of the US market.

The MSCI EAFE Small Cap ((SCZ)) has performed slightly better, with a YTD return of 7.37%.