Under uncertain yet seemingly improving economic conditions, the S&P 500 Index ((IVV)) has inched its way forward for much of the year, gaining just under 14% during this low-volume, low (but increasing) volatility period. The index bounced off support at the 1970 level and now finds itself close to new all-time highs again in the span of just three trading days.

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. The value index has been underperforming vs the S&P 500, returning 12.45% YTD.

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. Growth stocks have been the better bet in 2014, as the index is ahead of pace set by the S&P 500, returning 15.53% YTD.

A short-term trend of growth stocks outperforming value stocks has emerged. Over the longer term, value stocks have been the better performer, but that trend may have reversed as evidenced by this chart.

The MSCI EAFE Index ((EFA)), a global developed market index that encompasses Europe, Australasia, and the Far East, has underperformed versus the S&P 500 signficantly, having failed at both moving averages in the last quarter.  It is down slightly for all of 2014; 4.87% to be exact.

The MSCI EAFE Value Index ((EFV)) consists primarily of low P/E international large-cap value stocks in the financials, energy, and communications industries. Like the US markets, international value stocks are also underperforming growth stocks of late, after outperforming earlier in the year. The index is down 5.56% since the beginning of the 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 down 4.42% YTD.

In the past three years, a longer-term trend of value stocks outperforming growth has emerged, but that trend is in danger of flipping soon.