It’s a new year, and the markets keep plugging along.  After a minor drop to the trend line following the holiday, the Standard & Poor’s 500 ((IVV)) has resumed its climb up, and has continued its tear since blasting through resistance at the 50-day moving average in mid-October. Despite the euphoric state of the markets, there is no reason to sell now, as no support levels have been broken. But if the market wishes to continue its run to new highs, it must stay above the 1830 level, a level that offers strong support. The index is up 27.84% in the last year.

The S&P 500 Value Index ((IVE)), 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 the market as a whole. This index is just above its uptrend line at the 85 level, and must keep from closing below this level if it wants to stay the course. Compared to the S&P 500, the index is underperforming but by the slightest of margins, returning 26.89% in the last year.

The S&P 500 Growth Index ((IVW)), 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 slightly ahead of pace set by the S&P 500, and has the slightly better-looking technicals. In the last year, the index is up 28.19%, more than the overall market.

In the past few months, a short-term trend of growth stocks outperforming value stocks has emerged. The trend is weakening of  late though.

The MSCI EAFE Index ((EFA)), a global developed market index that encompasses Europe, Australasia, and the Far East, has underperformed during this latest run-up that began in October. The index is right below resistance, with a breakout likely this week, whether it be positive or negative. The index is up 18.67% in the last year.

The MSCI EAFE Value Index ((EFV)), which consists primarily of low P/E international large-cap value stocks in the financials, energy, and communications industries, is also staggering of late, but has managed to hold its year-end gains to this point. Like the US markets, international value stocks are under-performing growth stocks of late, and the trend seems to be strengthening. The index is up 17.68% in the last year.

The MSCI EAFE Growth Index ((EFG)), which consists primarily of high-growth international large-cap growth stocks in the industrial, healthcare, and consumer cyclical industries, has outperformed compared to the value index. The index is up 19.29% YTD.