NEW YORK ( TheStreet) -- As equity markets across the world look to be approaching major resistance levels, emerging markets are breaking higher out of consolidation patterns.The move higher is a combination of improved global demand, rising commodity prices, and funds flowing out of developed economy's financial markets. The first chart below is of iShares MSCI Emerging Markets ( EEM). Emerging-market equities bottomed in late June and have since begun a reversal higher. Even in the face of a stronger U.S. dollar, which is usually bearish for emerging markets, these indexes pushed higher. There looks to be room for more run up within the emerging market sector. As a point of caution , monitor how this exchange-traded fund reacts to rising U.S. interest rates to gauge whether there is a valid chance emerging equities reach its previous yearly highs.