Emerging Stocks Seen Overbought as Jump Spurs Brazil Bull
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The biggest rally in developing-nation stocks in a year is showing signs of reversing to analysts following technical indicators.
The MSCI Emerging Markets Index rose 6.2 percent in the last six days, the most for the period since September 2012, as prospects for an imminent U.S. strike on Syria eased and economic data improved in China. The relative strength index for the gauge touched 70 -- the threshold that signals a security is poised to decline -- for the first time since Jan. 14. That level preceded an 18 percent slump in five months.