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Friday's Bonus Content Beware the Death Cross: 3 Stocks Triggering This Spooky SignalWritten by Dan Schmidt. Published 10/22/2025. 
Key Points - A Death Cross is a bearish signal formed when a stock's 50-day moving average drops under its 200-day moving average.
- The Death Cross often precedes bearish momentum swings, but it's a lagging indicator that must be used with fundamental and technical research.
- These three stocks recently had a Death Cross strike their charts, and a deeper look shows all three facing other headwinds.
There are two types of Halloween people: those who like jump scares, and those who don't. Even if you enjoy haunted hayrides and movies like The Conjuring, you probably don't want a jump scare from your portfolio — which is why many investors keep the bulk of their wealth in diversified index funds. When momentum fades, a stock can plunge faster than the Tower of Terror. If you're an active trader, you need to spot signs of a looming momentum shift before it becomes a trend. Like in a scary movie, stocks often give hints that something nefarious is lurking. What If Washington Declared That: YOUR Money ISN'T Actually Yours?
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What does that mean? It means Washington thinks they can seize, freeze, or drain your accounts—whenever they want. Get your free guide now by clicking here >> Today, we'll examine three companies forming a dreaded technical pattern: the Death Cross. Death Cross Signals a Bearish Momentum Shift The Death Cross is a well-known bearish signal because it is visually prominent and easy to identify. Death Crosses form when a stock's 50-day moving average falls below its 200-day moving average, with the two lines forming an "X" on the daily chart. When the 50-day drops under the 200-day, short-term momentum is weakening and a trend shift could be on the horizon. Even though the Death Cross uses two longer-term averages, traders across time horizons watch for it. Technical traders may take profits or enter short positions in individual stocks or ETFs when they see a Death Cross. Institutional investors with longer timeframes watch for Death Crosses on major indices as a "risk-off" signal—meaning they may lower exposure and hold more cash. Death Crosses on the S&P 500 preceded long-term bear markets in 2000, 2007 and 2022. That said, the Death Cross is a lagging indicator: stocks are often already declining by the time the signal appears. That happened during the quick bear market of December 2018, when stocks were already recovering by the time the Death Cross registered. To reduce false alarms, combine the Death Cross with other metrics such as the Relative Strength Index (RSI) or MACD to confirm the momentum shift. 3 Death Cross Stocks Sending Scary Signals to Investors Finding stock charts with Death Crosses is the easy part. Once you identify the signal, you must evaluate other fundamental and technical factors. For example, a Death Cross that precedes a blowout earnings report or a takeover bid can be rendered moot. Each of the three stocks below faces additional fundamental or technical headwinds alongside a Death Cross. Boston Scientific: Elevated Valuation Leaves Little Margin For Error Medical device manufacturer Boston Scientific Corp. (NYSE: BSX) continues to deliver strong earnings beats and sales growth, but not enough to impress the market. The company beat top- and bottom-line estimates in its Q2 2025 report, with sales up 22% year-over-year. Yet the stock is down 3% over the past three months, and its 14% gain over the past 12 months lags major indices. The chart shows the market shrugging off BSX's results, and remaining momentum appears to be collapsing. The price broke through key support at the 50-day simple moving average (SMA), then sliced through the 200-day SMA on the way down.  The Death Cross appeared as the stock stabilized in October, and prior support levels could become resistance. BSX also faces fundamental headwinds from a heightened valuation: the stock is trading at nearly 60x earnings and about 10x sales, both well above the medical sector average. Darden Restaurants: Momentum Fading as Costs Rise Popular chains such as Olive Garden, Longhorn Steakhouse, Yard House and Bahama Breeze all fall under Darden Restaurants Inc. (NYSE: DRI). While the company owns higher-end concepts like The Capital Grille, most of its locations are full-service casual dining — a segment that has been losing market share to fast-casual competitors. With labor costs and key inputs like beef rising, full-service casual restaurants are struggling to keep prices competitive.  DRI shares are starting to feel the pressure. The stock recently lost the 50-day SMA support that had been in place since the start of the year, and upward momentum has dissipated. Unless the restaurant industry reverses course, DRI may continue to underperform. Stryker: Strong Financial Performance Hides Weakening Momentum Stryker Corp. (NYSE: SYK) is another major medical device company similar in size to Boston Scientific. Stryker has a more modest valuation and consistently posts top- and bottom-line beats (as it did in Q2 2025). So why is its stock only up 3% over the past 12 months? The company depends on devices and tools for elective procedures, such as joint replacements. This segment is sensitive to macroeconomic trends, and Stryker's international exposure makes it vulnerable to tariffs.  The SYK chart shows the next few sessions could be important. A Death Cross is forming as the price approaches the 200-day SMA, a prior area of support, and the RSI indicates weakening momentum. If the price is rejected at the 200-day, there is likely more downside for SYK shares.
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