Danger ahead? Here's how you read Street signs

Is the world done with emerging markets? The answer is in the winds of change reflected on the MSCI Emerging Index. The valuation of this Index has touched a year high and now the craze to own a piece of emerging market assets appears to be waning. Traders are already raising bearish bets as they do not expect the low-interest rate stance of the US Federal Reserves to last. The short open interest on the Vanguard Emerging market exchange traded fund (ETF), one of the largest emerging market ETFs globally, has touched 2.4% of the outstanding shares compared with 0.4% at the end of April. The net asset value of the ETF has increased 7.5% in the past one month.

And if emerging markets are going to be at the receiving end, then India is expected to take a greater hit as it has been the major beneficiary of the world's love for EMs so far. Here are the numbers: The emerging market fund received inflows of $13.7 billion over the three months through May. And India claimed more than $5 billion of this kitty.

Here are a few Street Signs that signal danger ahead: