Our technical scanner runs daily across the S&P 500 and Nasdaq 100, scoring each stock on a range of momentum, trend and volume indicators to identify potential inflection points. On 21 September 2026, the screen flagged five names where bearish signals significantly outnumber bullish ones, making them worth watching as potential short candidates. A short candidate is a stock that technical analysis suggests may be due for further price weakness — it does not constitute a recommendation to sell or short any security.
Important risk warning: Short selling carries substantially higher risk than buying equities. Losses on a short position are theoretically unlimited, and stocks can remain overvalued for extended periods. Always size positions carefully and use appropriate risk management tools. The following analysis is for informational purposes only.
1. Leidos (LDOS) – 13 technical sell signals
Price: $133.78 | Daily change: -3.88%
View the full technical analysis of Leidos
Leidos is a defence and technology services contractor that had been grinding higher through the summer, closing at around $129.55 in early September before accelerating to today’s level. The sharp single-session decline of nearly 4% is notable given the stock’s recent upward momentum, and the scanner’s count of 13 bearish signals against just 3 bullish ones suggests the technical picture has deteriorated materially.
A significant recent development is the company’s removal from the FTSE All-World Index in mid-September, which typically triggers forced selling by passive funds tracking that benchmark. Such index exclusions can create sustained selling pressure that extends well beyond the announcement date, particularly for mid-to-large-cap names with significant overseas institutional ownership.
While Leidos did secure a five-year, $301 million contract extension in August — a positive fundamental signal — and some analysts continue to characterise it as a growth stock, the technical evidence points firmly in the opposite direction near term. Investors considering a short position should be mindful that government contract wins can act as positive catalysts at unpredictable moments.
2. Omnicom Group (OMC) – 13 technical sell signals
Price: $81.76 | Daily change: -5.03%
View the full technical analysis of Omnicom Group
Omnicom Group, one of the world’s largest advertising and marketing services companies, is today’s worst daily performer among our short candidates, falling more than 5% in a single session. The scanner registers 13 bearish signals versus 6 bullish ones, a ratio that places it firmly in our watch list despite having a slightly higher bull count than some peers.
The stock’s longer-term record has been modest by sector standards. Commentary from analysts has highlighted that Omnicom has trailed the broader communication services sector over the past year, and a five-year total return of roughly 38% — while positive — looks less compelling when set against the technology-heavy gains elsewhere in the market. The advertising industry more broadly faces structural questions around the shift of budgets toward programmatic and AI-driven platforms, which could pressure traditional agency revenue models.
Although the company has been positioning itself around artificial intelligence and strategic transformation, such initiatives take time to deliver measurable financial results. The combination of sector underperformance, a sizeable intraday decline, and a heavily skewed bearish technical score makes this a name short sellers may choose to monitor closely. As always, a sharp one-day drop can also attract bargain hunters, adding to reversal risk.
3. Palo Alto Networks (PANW) – 13 technical sell signals
Price: $328.48 | Daily change: -9.28%
View the full technical analysis of Palo Alto Networks
Palo Alto Networks is the most dramatic mover on today’s list, shedding more than 9% in a single session. The cybersecurity leader has had a volatile 2026: a double-digit drop in February following disappointing earnings, a strong mid-September rally on the back of raised analyst price targets, and now a fresh and significant leg lower. The scanner shows 13 bearish signals versus only 3 bullish ones, reflecting a technical backdrop that has worsened sharply.
Recent news flow is notably mixed. Morgan Stanley lifted its price target on the stock as recently as early September, and some commentators argue that growing concerns around AI safety could open a new market opportunity for cybersecurity vendors. However, institutional profit-taking and resistance at elevated valuation levels appear to be dominating short-term price action, with the stock declining on multiple separate sessions in September alone.
PANW trades at a premium multiple that leaves it sensitive to any disappointment in growth expectations. That said, the cybersecurity sector benefits from structural demand tailwinds, and positive analyst commentary could trigger sharp short-covering rallies. Traders considering a short position here should be particularly attentive to position sizing, given the stock’s history of volatile intraday swings in both directions.
4. Autodesk (ADSK) – 12 technical sell signals
Price: $241.73 | Daily change: -2.41%
View the full technical analysis of Autodesk
View the full technical analysis of Autodesk
Autodesk, the design and engineering software group, records 12 bearish signals against just 3 bullish ones in today’s scanner. The stock has had a turbulent year, falling to recent lows in the middle of 2026 — a move that triggered unusually large put options activity at the time — before partially recovering. Today’s 2.4% decline suggests the rebound may be losing momentum.
On the fundamental side, opinion is divided. One valuation model published in late August suggested the stock could be trading significantly below its intrinsic value, while the company drew attention earlier in the year for a round of job cuts. Billionaire investor Steve Cohen was reported to hold Autodesk as a large-cap position, lending it some institutional credibility, but headline ownership does not in itself provide a technical floor.
The design software market is evolving rapidly, with AI-assisted tools beginning to challenge established workflows. Autodesk’s ability to integrate and monetise these capabilities will be a key determinant of its medium-term trajectory. From a purely technical standpoint, however, the current signal imbalance warrants attention. Short sellers should note that any positive earnings surprise or product announcement could quickly reverse near-term weakness.
5. Constellation Brands (STZ) – 12 technical sell signals
Price: $129.35 | Daily change: -0.98%
View the full technical analysis of Constellation Brands
Constellation Brands, the drinks group best known for its premium beer portfolio, rounds out our list with 12 bearish signals versus 6 bullish ones. The stock is trading near a 12-month low, and the technical deterioration is being reinforced by a challenging fundamental backdrop. Management has flagged that logistics and commodity cost inflation is expected to compress margins in the second half of the financial year, a warning that has done little to reassure the market.
The balance sheet has also come under scrutiny. A recent $300 million term loan has added to the company’s debt load, prompting concern from at least two major investment banks. BNP Paribas maintains an underperform rating with a price target well below current levels, and Deutsche Bank has trimmed its own target, retaining only a hold rating. This analyst caution reflects a broader sense that near-term earnings headwinds are real and not yet fully priced in.
Constellation’s longer-term premiumisation strategy — focusing on high-end beer and innovation — remains intact and has delivered results in prior cycles. However, a stretched consumer environment and rising input costs create a difficult operating backdrop in the near term. With the stock already near multi-month lows, there is a risk that much of the bad news is already reflected in the price, which short sellers should weigh carefully.
Disclaimer: This article is produced for informational and educational purposes only and does not constitute investment advice, a solicitation, or a recommendation to buy or sell any security. Technical analysis identifies historical price patterns and is not a reliable predictor of future performance. Short selling involves significant risks, including theoretically unlimited losses. Always conduct your own due diligence and consult a qualified financial adviser before making any investment decision. The Wall Street Stock Investors Club and its contributors may hold positions in securities mentioned.