Our technical scanner runs daily across the S&P 500 and Nasdaq 100, measuring a broad range of momentum, trend and volume indicators to surface stocks showing the most pronounced bearish setups. On 3 September 2026, five names stood out with the highest concentration of technical sell signals. Short candidates are stocks where the weight of technical evidence points to potential further downside — they are not recommendations to sell or short.
Important risk warning: Short selling carries significantly greater risk than buying equities. Losses on a short position are theoretically unlimited, margin requirements can force early exit, and positive news or a short squeeze can reverse a bearish setup rapidly. Always size positions carefully and apply appropriate risk management before considering any short trade.
1. Leidos (LDOS) – 13 technical sell signals
Price: $133.78 | Daily change: -3.88%
View the full technical analysis of Leidos
Leidos tops this week’s bearish scan with the maximum reading of 13 sell signals against just 3 bull signals, reinforcing a technically weak picture. The stock is down sharply on the session, continuing what has been a difficult year for the defence IT contractor. A Jefferies downgrade from Buy to Hold back in June added institutional caution to an already struggling chart, and the shares have spent much of 2026 underperforming the broader S&P 500 on multiple sessions.
On the fundamental side, the picture is mixed. Leidos recently secured a sizeable US Army cybersecurity contract worth approximately $301 million over five years, which provides some revenue visibility and backlog support. However, lingering uncertainty around its Health IT business appears to have weighed on sentiment for much of the year, and several news items noted the stock screening as cheap on valuation metrics while delivering weak returns — a combination that rarely attracts fresh buying momentum in the near term.
Technically, a pronounced single-day decline of nearly 4% on top of an already extended downtrend warrants attention. Bears will point to the lopsided signal ratio; bulls may argue the contract win and valuation discount limit downside. Either way, the technical evidence is firmly negative on today’s reading.
2. Omnicom Group (OMC) – 13 technical sell signals
Price: $81.76 | Daily change: -5.03%
View the full technical analysis of Omnicom Group
Omnicom shares are the worst performer among today’s five candidates on a day-over-day basis, falling more than 5% and accumulating 13 bearish technical signals alongside 6 bullish ones. The global advertising group completed its merger with IPG earlier this year, and investors have grown increasingly cautious about the costs and execution challenges associated with integrating two large organisations. Higher interest expense taken on to finance that deal has added further pressure to the earnings picture.
Second-quarter results in late July illustrated the tension clearly. While Omnicom beat revenue estimates — partly inflated by the consolidation of IPG — profitability disappointed, with non-GAAP earnings broadly in line but statutory margins drawing scrutiny. The share price fell sharply following that report, and although a subsequent recovery of around 6% over the following month suggested some bargain hunting, today’s decline indicates sellers have reasserted control.
The integration narrative will take time to play out, and the advertising sector faces macro headwinds if corporate spending tightens. Bears will focus on margin compression and debt levels; bulls can point to the enlarged revenue base and any cost synergies yet to materialise. For now, the technical indicators side firmly with the bears.
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 story on today’s list, with shares down nearly 9.3% despite the company reporting fiscal fourth-quarter earnings that beat analyst expectations on both the top and bottom lines. Next-Generation Security annualised recurring revenue reportedly grew at an impressive rate, and management issued fiscal 2027 guidance that came in ahead of consensus. On paper, this is a strong earnings report — yet the stock is being sold aggressively.
This kind of adverse market reaction to positive news is a classic technical and sentiment warning sign. The pattern — sometimes described informally as a “sell the news” response — can indicate that expectations were already priced in at elevated levels, or that investors are questioning the sustainability of current growth rates relative to a demanding valuation. The stock had reportedly roughly doubled in price over the course of 2026 ahead of this report, leaving little margin for any disappointment.
With 13 sell signals and only 3 bull signals, the scanner reflects the severity of today’s technical breakdown. Potential short sellers should note that PANW operates in a structurally growing sector with genuine AI-driven demand tailwinds, meaning a recovery could be swift if sentiment shifts. The risk-reward for a short position here deserves careful consideration.
4. Autodesk (ADSK) – 12 technical sell signals
Price: $241.73 | Daily change: -2.41%
View the full technical analysis of Autodesk
Autodesk enters today’s list with 12 bearish signals and just 3 bullish ones, the shares declining just under 2.5% on the session. The design-software group reported its fiscal second-quarter results in late August, delivering revenue and earnings per share above the upper end of its own guidance range — a solid beat by most measures. However, the accompanying third-quarter profit outlook came in softer than some on the Street had anticipated, prompting a sharp single-day decline of around 5% following the release.
That post-earnings gap lower appears to have defined the near-term technical picture. Piper Sandler maintained its overweight rating but felt compelled to reduce its price target, while GF Value analysis suggested the stock looked materially undervalued on intrinsic-value metrics following the selloff. Separately, Berenberg highlighted AI as a potential headwind for Autodesk’s core computer-aided design business, even while maintaining a constructive overall view on the company’s growth prospects.
The tension between a solid operational track record and growing questions about AI disruption risk and near-term margin guidance creates an uncertain backdrop. Technically, the combination of the post-earnings gap and today’s continued weakness produces a clearly bearish signal cluster. Any short position should account for the possibility that the valuation argument attracts longer-term buyers at these levels.
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 Corona and Modelo beers, rounds out today’s list with 12 technical sell signals and 6 bull signals — the highest bull-signal count among today’s candidates, which may temper bearish conviction somewhat. The stock is down modestly on the session but the chart tells a more troubled story over a longer timeframe. At current levels, Constellation trades well below fair-value estimates that analysts had placed considerably higher earlier in the year, reflecting a prolonged period of underperformance.
The company has demonstrated genuine operational strengths, including solid free cash flow generation from its beer portfolio in fiscal first-quarter results, and management appeared to stabilise the business somewhat after CEO transition concerns weighed on sentiment in early 2026. A Citi upgrade to Buy and an adjusted fair-value estimate from analyst models suggest some on the Street see meaningful recovery potential.
Nevertheless, top-line softness and a share price that has been drifting lower for an extended period leave the technical indicators pointing downward. With 6 bull signals, the counter-arguments are more visible here than for other names on this list, and the consumer staples nature of Constellation’s business provides some defensive characteristics. Bears should weigh those factors against the weak chart before establishing any position.
Disclaimer: This article is provided for informational and educational purposes only and does not constitute financial advice, an invitation to invest, or a recommendation to buy or sell any security. Technical analysis identifies patterns in historical price and volume data; it does not guarantee future performance. Short selling involves substantial risk, including potentially unlimited losses. Always conduct your own research 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.