Wal-Mart shares hit a 52-week low and are down 20 percent from highs in January. But if the chart work of one technical analyst is correct, that could be good for the rest of the market.
Wald charts the relative strength of Wal-Mart to the S&P 500 by dividing the price of the stock with that of the index. In doing so, he notices a strong multiyear downtrend in Wal-Mart compared to the rest of the market.
"This is a sign that investors are still embracing risk," he said. "That's a healthy thing for the market. We think that overall stocks continue to grind higher because of it."