As markets around the world tumbled last week, one technician is seeing some very bearish signals for emerging markets and U.S. stocks.
Todd Gordon of TradingAnalysis.com attributed the recent plunge in the S&P 500 to turmoil in emerging markets. In turn, emerging markets have been driven by the decline in crude oil, he said.
Looking at the charts, Gordon noted that a few years ago, the S&P 500 Index exchange traded fund (SPY), the emerging markets ETF (EEM) and the U.S. Oil Fund (USO) had previously traded together before a drastic divergence took place.
"As the S&P 500 recovered and pushed higher, those emerging markets never recaptured those 2010 and 2011 highs. The divergence between emerging markets and the S&P started then," Gordon told CNBC's "Trading Nation."
With global stocks under pressure, "the S&P is now all of a sudden starting to take notice," he added.