Each week our technical scanner evaluates every stock in the S&P 500 and Nasdaq 100, tallying bullish and bearish indicator readings across momentum, trend, volume and volatility measures. The five names below registered the highest number of bearish signals on 23 September 2026, making them the most technically challenged stocks in the two indices at this moment. Short candidates are stocks that technical analysis suggests may continue to decline, though past signals are never a guarantee of future price movement.
Important risk warning: Short selling involves risks that go well beyond those of a standard long position. Losses on a short trade are theoretically unlimited, margin requirements can force you to cover at the worst moment, and a sudden positive catalyst can trigger a rapid short squeeze. Only experienced investors with a clear risk-management plan should consider short strategies, and position sizing should reflect the elevated danger.
1. Leidos (LDOS) – 13 technical sell signals
Price: $133.78 | Daily change: -3.88%
View the full technical analysis of Leidos
Leidos leads today’s bearish ranking with 13 sell signals against only 3 buy signals, and a single-session decline of nearly 4% adds weight to the technical deterioration. Despite the weakness, the fundamental backdrop is not entirely bleak: the defence and technology group posted record quarterly revenue of $4.56 billion in its most recent earnings report, representing 7% year-on-year growth, and management raised its full-year guidance shortly afterwards. New initiatives — including an AI-driven UK defence platform called Parcata developed alongside DHL, and a federal AI data partnership with The Modern Data Company — signal continued strategic momentum.
However, recent commentary from Jefferies, which trimmed its price target on the stock, and a separate assessment noting that Leidos has trailed the broader market over the past year, suggest that institutional confidence has softened despite solid operating results. When strong fundamentals fail to translate into price performance, it can indicate that the market is pricing in risks — such as budget uncertainty or contract delays — that are not yet fully visible in reported numbers.
From a purely technical standpoint, the accumulation of 13 bearish readings across momentum and trend indicators warns that near-term selling pressure may persist. Investors should weigh this signal carefully against the company’s genuine operational strengths before drawing conclusions about direction.
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 matches Leidos with 13 bearish signals and posts the sharpest single-day decline among today’s candidates, falling more than 5%. The stock has endured a turbulent September: it shed 3.5% on 9 September and a further 4.2% the following day, falling below several key moving averages on heavy trading volume. A recent leadership change has added an additional layer of uncertainty, and while the stock went ex-dividend on 18 September — reflecting a cash payment of $0.80 per share — dividend income alone has not been sufficient to stabilise sentiment.
The difficulties trace back further, to a second-quarter earnings report in late July that disappointed on profitability despite adequate revenue performance. When an advertising conglomerate of Omnicom’s scale misses meaningfully on the bottom line, it tends to raise questions about margin management, client spending trends and the competitive pressures the industry faces from technology-driven alternatives to traditional agency models.
With 13 sell signals and only 6 buy signals, the technical picture remains decisively negative. Bears will point to persistent price weakness below moving averages; bulls may argue that the dividend and franchise value provide a floor. As ever with short candidates, it is the tension between these two narratives that creates risk in either direction.
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 today’s most dramatic mover, shedding more than 9% in a single session — an unusually large daily decline for a large-cap constituent of the S&P 500. The sell-off comes after a remarkable run: the stock had approximately doubled over the previous six months, pushing valuations to levels that some analysts now consider difficult to justify. One widely followed valuation framework suggests the shares may be overvalued by more than 58% relative to intrinsic estimates, and Bernstein recently downgraded the stock while maintaining a more favourable view of sector peer Zscaler.
The cybersecurity sector more broadly has attracted scrutiny in recent weeks, with concerns that the AI-driven re-rating of security names has run ahead of underlying earnings growth. ETFs concentrated in cybersecurity have reflected this pressure. Palo Alto itself continues to innovate — integrating advanced AI models into its platform — but the market appears to be questioning whether the pace of monetisation can keep up with the lofty expectations embedded in the share price.
With 13 bearish technical signals against only 3 bullish ones, the scanner is firmly in the bear camp. Prospective shorts should note, however, that high-momentum names with strong secular tailwinds can recover sharply and unpredictably, making risk control especially important in this type of trade.
4. Autodesk (ADSK) – 12 technical sell signals
Price: $241.73 | Daily change: -2.41%
View the full technical analysis of Autodesk
Design software specialist Autodesk enters our list with 12 bearish signals and only 3 bullish ones, accompanied by a daily decline of 2.4%. The stock has had a mixed year: it attracted unusual put-options activity at an earlier point when shares were trading near recent lows, and an early-2026 round of job cuts raised questions about growth priorities and cost discipline. Although one valuation analysis suggested the stock was meaningfully undervalued following its most recent earnings preview, the broader market has been slow to reward that view.
Autodesk’s customer base — architects, engineers and construction professionals — is sensitive to conditions in commercial real estate and infrastructure spending, sectors that have faced their own headwinds. Billionaire investor Steve Cohen’s continued interest in the stock, as reported earlier this year, indicates that sophisticated long-only investors see value, which is a meaningful counterweight to the bearish technical picture.
Nevertheless, 12 sell signals across momentum, trend and volatility indicators suggest that near-term price action favours the downside. Traders considering a short position should be aware that any positive earnings surprise or sector rotation into technology value names could trigger a swift reversal, particularly given that some analysts argue the shares are already trading at a discount to fair value.
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 company behind the Corona and Modelo beer franchises in the United States, rounds out our list with 12 bearish signals and 6 bullish ones — the most balanced bear-to-bull ratio in today’s selection, though still clearly tilted to the downside. The stock recently touched a fresh 52-week low, extending a prolonged period of underperformance relative to both the consumer defensive sector and the broader market. Over the past year the shares have lost more than a fifth of their value from prior highs, a significant drawdown for a company with well-recognised and resilient consumer brands.
Some of the pressure appears tied to macroeconomic and demographic concerns around alcohol consumption trends, as well as to the operational and financial implications of a recent chief executive transition. A revised fair value estimate — lowered to approximately $171.50 from a higher previous figure — signals that even long-term bulls have moderated their expectations. On the positive side, the company continues to generate strong free cash flow, and quarterly earnings have broadly held up.
The combination of a 52-week low, persistent sector underperformance and 12 technical sell signals paints a cautious picture. That said, Constellation’s cash generation and brand strength mean that any improvement in consumer sentiment or clarity on strategic direction could produce a sharp recovery. Short sellers should factor this into their risk assessment.
Disclaimer: This article is provided for informational and educational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Technical analysis identifies patterns in historical price and volume data; it does not predict future outcomes with certainty. Short selling is a high-risk strategy that may not be suitable for all investors. Always conduct your own due diligence and consult a qualified financial adviser before making investment decisions. The Wall Street Stock Investors Club and its contributors may hold positions in securities mentioned in this article.