Emerging markets were lower last week with EEM down 1.3% and EWZ down slightly as well. Despite a relatively small drop in both markets VXEEM almost 4% higher and VXEWZ rallied 5%. Near term volatility was higher, but both curves flattened with all futures contracts lower on the week. EEM options were one of the most heavily traded contracts Friday with volume split evenly between puts and calls. The increase in IV that accompanies even activity indicates a move in either direction was being anticipated by traders. In addition, emerging markets have lagged the US markets so a global equity market turn to the downside might just high those markets a little harder.