The Chinese market is likely to fall 25 percent, taking U.S. stocks with it, with the S&P 500 possibly falling below 800, Robin Griffiths, technical strategist at Cazenove Capital, said Monday. But then U.S. indexes will rise again for a substantial amount of time.
China has been the "strongest market on the planet," Griffiths said. It bottomed in October last year and went more or less straight up, he added.
But last week, the Shanghai Composite fell back 8 percent as the tepid reception for the world's largest initial public offering of China State Construction Engineering caused a selloff in the Asian market. Concerns that the region's banks might begin tightening lending also hit shares.
"Anything that's just gone up 100 percent, for no other reason than that, you're bound to see some profit taking," Griffiths told CNBC. "So the label I apply to China is it is in a cyclical bull market in a secular uptrend. It doesn't get any better than that."
For the Chinese market, the top is in for the time being, and it have a pullback in its bull market, possibly of 25 percent, he said. This pullback will be reflected in the US market as well, he added.