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Correlating global equity risk.

In a note released Friday, John Kosar, director of research at Schaumburg, Illinois–based financial information services provider Asbury Research urged caution that a correction in U.S. equities may not be complete. He noted that the correlation of short-term price fluctuations between the German DAX index and S&P 500 has remained strongly positive in recent weeks.

Kosar argues that such a strong relationship indicates a reactive market psychology where bad news for any specific geography rapidly bleeds over into global markets.