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Here’s what could bring the US market down

Trader on the floor of the New York Stock Exchange.
Lucas Jackson | Reuters
Trader on the floor of the New York Stock Exchange.

Hong Kong's Hang Seng index has maintained a sometimes loose but consistent positive correlation to the S&P 500 at various intervals over the past 25 years.

One could see this relationship at work just over the past two months as the S&P 500 first declined by 2.4 percent from near all-time highs in late May while the Hang Seng coincidentally peaked and collapsed. The decline in the U.S. market was triggered by China, so our market followed their market lower.

Since U.S. equities bottomed in early July along with Chinese stocks, there might be clues investors can take from this correlation.