Emerging Markets have rallied 9% in 24 days and sits near key resistance on the iShares MSCI Emerging Markets (EEM, quote) at $41.00 and 1000 on the MSCI EM.

Emerging-marketsWe think the recent outperformance to SPX is about currency resilience and China (FXI, quote) outperforming. Both will continue to surprise.

Emerging Markets have outperformed the SPX by 6.4% in last 21 days from the bottom of this spread.

There is enormous room for this spread to continue to move but not calling for a straight shot in fact key resistance on the spread in line with that on the aforementioned indices.

Watch .2000 on the spread for headwinds.

Chart_ EEM

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