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 frameworks. The stocks featured below recorded the highest number of simultaneous bear signals on 7 September 2026, making them the most technically compromised names in our universe at this snapshot in time. Short candidates are stocks where the weight of technical evidence points to continued price weakness rather than recovery.
Important risk warning: Short selling involves substantially greater risk than buying equities. Losses on a short position are theoretically unlimited, margin requirements can force early exits, and heavily shorted stocks are vulnerable to sharp short squeezes. The analysis below is purely technical and educational. Always size positions carefully and use appropriate risk controls 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 bear-signal leaderboard with 13 bearish readings against just 3 bullish ones, and Monday’s session underlined the technical deterioration with a loss of nearly 4%. The stock has been under sustained pressure throughout 2026, weighed down by uncertainty surrounding health IT contract awards and a broader reassessment of the defence IT spending outlook. Several valuation-focused commentators have argued the shares look inexpensive on traditional metrics, yet the market has consistently refused to re-rate them higher, a warning sign in itself.
A late-August note highlighted a Navy mental health research contract worth up to $56.7 million, but the market’s muted response suggests investors are more focused on contract pipeline risk than on individual awards of this size. The stock slipped a further 3.4% just days before our scan date despite management announcing a share buyback programme — another signal that institutional sellers are currently overpowering any support from corporate activity.
With 13 bear signals covering momentum, moving-average alignment and volume trends, the technical picture argues for caution. Longer-term investors watching for a genuine reversal should wait for the indicator balance to improve meaningfully before drawing conclusions about any fundamental floor.
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 were the worst performer among our five candidates on the day, shedding more than 5% as the stock extended a slide that began when PepsiCo transferred its roughly $1.7 billion global media account to rival Publicis. Account losses of this magnitude are high-profile events in the advertising industry and tend to weaken client confidence at exactly the moment a company needs to retain business, amplifying the fundamental concern beyond the direct revenue impact.
The account loss comes on top of a disappointing second-quarter earnings report in late July, where profitability fell materially short of consensus expectations. Despite a brief rebound of around 6% in August — possibly driven by short covering or rotation — the stock has failed to reclaim meaningful technical ground, and the scanner now registers 13 bear signals against 6 bullish ones, the weakest net reading in our top five.
The advertising sector as a whole is navigating a challenging environment as clients scrutinise marketing budgets more closely. For Omnicom specifically, the combination of earnings misses and high-profile client departures creates a fundamental backdrop that sits uncomfortably alongside the deteriorating technical picture. Traders considering this as a short candidate should be mindful of potential recovery announcements or account wins that could trigger sharp reversals.
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 recorded by far the largest single-day decline in our scan, falling more than 9% on 7 September. That drop comes in spite of what was, on the face of it, a strong set of fourth-quarter results released earlier in the week, with earnings and revenue both ahead of consensus and next-generation security annual recurring revenue rising at an impressive pace. However, strong results at richly valued growth stocks do not always translate into price appreciation — investors who have already priced in an optimistic scenario may simply use positive news as an exit opportunity.
It is also worth noting that even after this week’s sharp correction, reports suggest the stock remains up substantially on a year-to-date basis, meaning sellers are locking in gains rather than capitulating from a position of loss. The cybersecurity sector had been a notable outperformer through mid-2026, with PANW and peers hitting record highs in August following industry conference commentary around AI-driven threat escalation.
From a technical standpoint, a stock dropping 9% despite beating estimates, while carrying 13 bear signals, tells us that momentum has turned decisively. Prospective short sellers should be acutely aware that high-quality growth names can recover quickly, and that the elevated volatility cuts both ways. Position sizing and stop discipline are particularly important here.
4. Autodesk (ADSK) – 12 technical sell signals
Price: $241.73 | Daily change: -2.41%
View the full technical analysis of Autodesk
Autodesk enters our list with 12 bear signals and a 2.4% decline on the day, continuing a period of erratic price action that has frustrated both bulls and bears. The design software group delivered a broadly encouraging second-quarter fiscal 2027 report in late August — cloud subscription revenue exceeded expectations and overall growth held up well — yet the forward profit outlook appeared to disappoint, sending the stock sharply lower in the immediate aftermath.
The acquisition of MaintainX and the company’s ongoing migration towards a subscription-heavy revenue model are strategic moves that many analysts view favourably in the long run, but they tend to create near-term margin pressure that can unsettle investors focused on quarterly profitability metrics. Trading volume on our scan date was reported to be running well below average, which can exaggerate price swings and reduce the reliability of intraday signals.
With 12 bearish technical readings sitting against just 3 bullish ones, the weight of indicator evidence is firmly negative. Nevertheless, Autodesk’s relatively defensive recurring revenue profile means the stock could stabilise quickly if broader market sentiment improves. Potential short sellers should treat this as a technically driven, shorter-term signal rather than a structural bear thesis on the business.
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 rounds out our list with 12 bear signals and a modest decline of just under 1% on the day. The beverage company’s technical deterioration has unfolded more gradually than some of the other names on this list, but the persistence of bearish indicator readings is notable. Since its last earnings report, the stock has lost approximately 3.8% and has broadly underperformed the wider market, with the most recent quarterly figures failing to provide the catalyst bulls had hoped for.
Barclays maintained a Hold rating on the stock in July, with an analyst price target that sits close to current trading levels — a signal that even relatively neutral observers see limited near-term upside. A presentation at the Barclays Global Consumer Conference scheduled for 8 September represents a potential event risk in either direction, and traders should factor that into any timing decisions.
On the constructive side, management continues to push a premiumisation strategy centred on its beer portfolio, and several commentators have highlighted the brand strength and margin potential of this approach over the longer term. However, near-term execution concerns, beverage demand trends and a technically weak chart all combine to land Constellation Brands firmly on our bear-signal watch list this week. The upcoming conference presentation could introduce short-term volatility, which adds an extra layer of risk for those contemplating a short position.
Disclaimer: This article is published by the Wall Street Stock Investors Club for informational and educational purposes only. It does not constitute financial advice, a solicitation, or a recommendation to buy or sell any security. Technical analysis does not guarantee future price movements. Short selling carries significant risks, including potentially unlimited losses. Always conduct your own due diligence and consult a qualified financial adviser before making any investment decision. The Club and its contributors may or may not hold positions in the securities mentioned.