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Emerging markets breaking out according to chart

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While Dow and S&P 500 records are stealing the headlines, the biggest breakout is taking place in emerging markets stocks. An exchange-traded fund tracking the sector just posted a bullish inverse head-and-shoulders pattern, suggesting more gains are ahead, according to technical analysts.

"With the iShares Emerging Market ETF closing firmly above the neckline of that inverse head-and-shoulders pattern, we think there is further upside ahead, " wrote Jonathan Krinsky, chief market technician at MKM Partners.

Since closing near a seven-year low in January, the EEM is up more than 30 percent.