Dan Nathan's Google Analysis

On

, Dan Nathan used technical analysis to show that

is approaching a death cross, which is a bearish technical pattern. For a death cross to appear on a chart the 50-day moving average has to cross below 200-day moving average and the stock has to fail to make new highs before the cross. Nathan thinks that

should trade lower, close to $500 and he decided to buy a put spread in the name to exploit the move lower. To prove that the death cross could lead to severe losses, he used a 10 percent decline in

. The move lower in the ETF happened after the death cross appeared on the chart. Steve Grasso commented that he likes better a golden cross because the death cross pattern is not very reliable.