Have you ever stared at a stock chart and felt a chill run down your spine? I have. There’s something unnerving about watching a once-promising stock teeter on the edge of a technical pattern that screams caution. In the financial world, few patterns spark as much debate—or dread—as the death cross. As we navigate the volatile markets of 2025, several well-known companies are inching toward this bearish signal, and it’s got investors on edge. Let’s dive into what this means, which stocks are at risk, and how you can approach this moment with clarity.
What Is a Death Cross and Why Should You Care?
The term death cross sounds like something out of a horror movie, but it’s a technical chart pattern that traders watch closely. It happens when a stock’s 50-day moving average dips below its 200-day moving average. This crossover often signals that the stock’s short-term momentum is weakening compared to its long-term trend, hinting at potential declines ahead. While it’s not a crystal ball, the death cross is like a flashing warning sign on the highway—it doesn’t guarantee a crash, but it’s worth slowing down to assess.
The death cross is a wake-up call for investors to reassess their positions and consider defensive strategies.
– Market analyst
In my experience, the death cross gets a bad rap. It’s not always a death sentence for a stock, but it does demand attention. The broader market context—like economic shifts or sector-specific challenges—often matters just as much as the pattern itself. With that in mind, let’s explore the companies currently flirting with this ominous signal and what it could mean for your portfolio.
Honeywell: An Industrial Giant at a Crossroads
Honeywell, a powerhouse in the industrial sector, is one of the big names hovering near a death cross. Its 50-day moving average is dangerously close to slipping below the 200-day moving average, with values recently at $218.79 and $218.21, respectively. This isn’t just a random blip—Honeywell’s chart is reflecting some real-world uncertainties.
The company recently announced plans to split into three separate entities by the end of 2026, focusing on automation, aerospace, and advanced materials. While this move could unlock long-term value, it’s stirring up short-term doubts. New companies often take time to find their footing, and investors might be wary of the risks. Despite a solid Q2 performance—$10.35 billion in sales, up 8% year-over-year, and adjusted earnings of $2.75 per share—Honeywell’s stock has slipped 6.7% in the past month and 8% year-to-date.
So, what’s the play here? For me, Honeywell’s fundamentals still look strong, but the death cross signal suggests caution. If you’re holding shares, it might be worth reviewing your position or exploring hedging strategies to protect against potential downside.
American Tower: A Communications Titan Under Pressure
Next up is American Tower, a leader in communications infrastructure. Its 50-day moving average ($206.38) is inching toward its 200-day moving average ($205.78), signaling a potential death cross. The stock has had a rough ride, dropping 16.2% over the past year, though it’s still up 5% in 2025.
Why the volatility? The communications sector is navigating a tricky landscape, with rising interest rates and shifting demand for infrastructure. American Tower’s business model—leasing space on its towers to wireless carriers—remains solid, but macro pressures like inflation could be weighing on investor sentiment. A death cross here might amplify those concerns.
- Key Risk: Rising interest rates could increase borrowing costs for capital-intensive companies like American Tower.
- Opportunity: Long-term demand for 5G and connectivity could bolster its growth.
- Action Item: Monitor macroeconomic trends alongside the stock’s technical signals.
Personally, I think American Tower’s long-term story is compelling, but the death cross is a reminder to stay vigilant. If you’re considering an entry point, waiting for the pattern to resolve might offer better clarity.
Waste Management: A Steady Player Facing a Bearish Signal
Waste Management, a staple in the refuse removal industry, is also teetering on the edge of a death cross. Its 50-day moving average ($225.36) is nearly kissing its 200-day moving average ($224.92). The stock has dipped 4.2% over the past three months, though it’s still up 7.6% for the year.
This one surprises me a bit. Waste Management operates in a relatively stable sector—trash isn’t going anywhere, right? But even defensive stocks aren’t immune to market jitters. The death cross could reflect broader economic concerns, like slowing consumer spending or operational cost pressures. Still, the company’s consistent cash flow makes it a name to watch rather than panic over.
Defensive stocks like Waste Management can still face technical headwinds, but their fundamentals often provide a safety net.
– Financial strategist
If you’re invested in Waste Management, this might be a good time to double-check your risk tolerance. A death cross doesn’t mean sell immediately, but it’s a nudge to reassess.
Pinnacle West Capital: Utilities in the Spotlight
Rounding out the list is Pinnacle West Capital, a utilities provider with a 50-day moving average of $90.03 and a 200-day moving average of $89.99. That’s about as close as it gets to a death cross without crossing the line. The stock is down 7% over the past six months, reflecting challenges in the utilities sector.
Utilities are often seen as safe havens, but rising energy costs and regulatory pressures can create turbulence. The death cross signal here might be a warning of further short-term pain, especially if interest rates continue to climb. Still, utilities tend to rebound over time, so long-term investors might see this as a buying opportunity.
| Company | 50-Day MA | 200-Day MA | YTD Performance |
| Honeywell | $218.79 | $218.21 | -8% |
| American Tower | $206.38 | $205.78 | +5% |
| Waste Management | $225.36 | $224.92 | +7.6% |
| Pinnacle West Capital | $90.03 | $89.99 | -7% (6 months) |
The Bigger Picture: Market Context Matters
These death crosses aren’t happening in a vacuum. The broader market is feeling the heat, with the S&P 500 facing pressure as investors question the sustainability of the artificial intelligence boom. When sectors like tech falter, it can ripple across industries, even to stalwarts like industrials or utilities. Perhaps the most interesting aspect is how these technical signals align with macroeconomic shifts—rising rates, inflation, and geopolitical uncertainty all play a role.
So, what’s an investor to do? I’ve found that blending technical analysis with fundamental research is the way to go. A death cross might grab headlines, but it’s the underlying story—earnings, debt levels, sector trends—that often tells you whether to hold, sell, or buy the dip.
- Check the Fundamentals: Look at earnings reports, debt ratios, and growth prospects.
- Assess Sector Trends: Is the stock’s industry facing unique challenges, or is this a market-wide issue?
- Plan Your Exit or Entry: Decide if the death cross warrants action or if it’s a wait-and-see moment.
How to Navigate a Death Cross Like a Pro
Let’s get real for a second: a death cross can feel like a gut punch, especially if you’re holding a stock that’s flashing the signal. But panic isn’t a strategy. Here’s how I approach these moments, and maybe it’ll help you too.
First, don’t just stare at the chart and freak out. Use the death cross as a prompt to dig deeper. Is the company facing temporary headwinds, or is this a sign of deeper trouble? For example, Honeywell’s spin-off plans might spook short-term traders, but its long-term growth in aerospace could be a game-changer. Similarly, American Tower’s exposure to 5G demand could outweigh its current dip.
Second, consider your time horizon. If you’re a long-term investor, a death cross might be noise rather than a signal to sell. But if you’re trading short-term, it could be a cue to tighten your stop-loss orders or explore options strategies.
Technical patterns like the death cross are tools, not prophecies. Use them wisely to inform, not dictate, your decisions.
– Investment advisor
Finally, diversify. I can’t stress this enough. If you’re heavily exposed to one stock or sector, a death cross can hit harder than it should. Spread your risk across industries to cushion the blow.
What’s Next for These Stocks?
Predicting the future is tricky, but the death cross offers a moment to pause and reflect. For Honeywell, the spin-off could create volatility, but its strong fundamentals suggest resilience. American Tower’s long-term growth in connectivity is promising, though short-term macro pressures could weigh it down. Waste Management and Pinnacle West Capital, as defensive plays, might weather the storm better than growth stocks, but they’re not immune to market swings.
In my view, the death cross is less about doom and more about opportunity. It’s a chance to reassess, rebalance, and maybe even snag a bargain if the fundamentals hold up. What do you think—would you hold steady or make a move? The market’s always got a way of keeping us on our toes.
As we move deeper into 2025, keeping an eye on these technical signals can help you stay ahead of the curve. Whether you’re a seasoned trader or just dipping your toes into the market, understanding patterns like the death cross can give you an edge. Stay curious, stay cautious, and most importantly, stay informed.
