More losses are ahead for Home Depot, according to one noted technical analyst
The company's shares surged during the summer and only kept rising after strong earnings reports in the homebuilding sector. But now the stock is down almost 5 percent just this month alone, and Carter Worth of Cornerstone Macro sees signs of more trouble ahead for Home Depot.
Worth points out in a chart that even though the home improvement retailer was close to making new highs this year, the stock's surge has since tapered off and Home Depot is now underperforming the S&P 500.
"You have a stock that attempted to make new highs and yet [is now] underperforming equities," he said Friday on CNBC's "Options Action."