The S&P 500 index, which can be measured using either a cap-weighted or an equal-weighted approach, is showing divergent trends. The cap-weighted S&P 500 has recently fallen below its 50-day moving average, while the equal-weighted version remains above this threshold. Historically, the equal-weighted S&P 500 has outperformed the cap-weighted version over the last 15 years. However, in 10 of the last 14 years, the cap-weighted index has outperformed the equal-weighted index by an annualized 4.0% ($ACWI). Analysts suggest that as momentum stocks lose their upward momentum, the ratio of the equal-weighted to market-cap weighted indexes should continue to rise, indicating potential advantages of a more balanced approach to equity investing.