Amazon is wreaking havoc on the retail space, and technician Todd Gordon says the charts are showing there’s actually no relief in sight for the group.
News on Monday that Amazon was rolling out its own “Geek Squad” similar to that of Best Buy sent shares of the electronics company tanking 6 percent, while Costco also fell more than 1 percent on a downgrade by BMO, which saw the Amazon-Whole Foods deal as a threat to the retailer. And unfortunately, the charts don’t look any better for the retail space.
“There’s news out from Amazon that’s really putting pressure on Best Buy in terms of an at-home delivery service,” said the TradingAnalysis.com founder. “That’s just compounding the problems that we’re seeing in retail.”
Monday on CNBC’s “Trading Nation,” Gordon compared a chart of the S&P 500 ETF (SPY) and XRT, the ETF that tracks retail stocks.
“As the SPY has moved up, you can see the retail stocks are pushing lower,” said Gordon. “[In fact], the retail stocks are threatening some pretty significant support.”
RELATED: Secrets to Reset Your Blood Pressure Permanently in 17 Days Without Medication!
Gordon is referring more specifically to what he sees as a “shelf of support” at around the $38 region. He noted that over the past three years, each time the XRT has fallen to this $38 level it found buyers. But Gordon believes that this time XRT could actually break below $38 to hit lows unseen since 2013.
