Each week our technical scanner evaluates every stock in the S&P 500 and Nasdaq 100 across a broad range of momentum, trend and oscillator indicators, flagging names where bearish signals significantly outnumber bullish ones. Today, 17 September 2026, we present the five stocks generating the most technical sell signals — stocks that active traders sometimes consider as short candidates.
Important risk warning: Short selling is a high-risk strategy. Unlike a long position, losses on a short trade are theoretically unlimited, and stocks can move sharply against you at any time. Dividends, hard-to-borrow fees and short squeezes add further complexity. This analysis is purely technical and is not financial advice. Always conduct your own due diligence and consider your personal risk tolerance before acting.
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 screen with 13 sell signals against just 3 bull signals, compounding a nearly 4% single-day decline. The technical picture is notably weak despite a fundamental backdrop that, on the surface, looks reasonably constructive. 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 took the opportunity to raise its full-year guidance. The shares initially rallied sharply on those results before reversing course in subsequent weeks.
More recently, Jefferies trimmed its price target on the stock, and the broader narrative around defence-linked technology spending — including space and AI — remains contested. Leidos has also announced a partnership focused on federal AI data infrastructure and launched an AI-driven defence platform in the UK in collaboration with DHL, signalling continued investment in growth areas. However, fresh capital commitments can weigh on near-term sentiment, particularly when the market is questioning valuation multiples in the defence technology space.
From a technical standpoint, 13 bearish indicators firing simultaneously suggests broad-based deterioration across trend, momentum and oscillator readings. Analysts remain broadly constructive on the fundamental story, which is precisely why traders considering a short position should be especially cautious — any positive catalyst could trigger a rapid reversal.
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 shares shed more than 5% on the day, making it the worst daily performer among today’s candidates. The stock also registers 13 technical sell signals, tied with Leidos at the top of the list, though OMC carries slightly more bull signals at 6. The advertising giant has undergone a significant transformation following its acquisition of Interpublic Group, which has dramatically inflated reported revenues — second-quarter sales were up over 63% year-on-year to $6.56 billion, though much of that growth reflects the consolidation of the combined entity rather than organic momentum.
Despite beating revenue expectations in both the first and second quarters of 2026, the shares fell on the Q2 results day, a classic sell-the-news reaction that often signals underlying market unease. The Interpublic integration carries meaningful execution risk, and absorbing a deal of that scale introduces cost pressures, cultural complexity and potential client conflict issues that take time to resolve.
Some analysts have argued the stock looks undervalued relative to the combined group’s earnings power, and there are reports of notable account wins in the media planning space. However, the technical evidence tells a different story right now. With trend and momentum indicators aligned to the downside and the shares having delivered a modest five-year total return, the technical setup warrants attention from those monitoring bearish setups — while acknowledging the valuation argument as a meaningful counterweight.
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 suffers the sharpest single-day decline among today’s five candidates, falling over 9% while generating 13 technical sell signals against only 3 bull signals. The cybersecurity leader has been navigating a complex narrative heading into fiscal year 2027. Management has articulated a clear strategic vision around artificial intelligence driving further consolidation in the cybersecurity sector, and the company enters the new fiscal year with strong operational momentum and a growing platform approach.
Nevertheless, the market appears to be reassessing what multiple that growth story deserves. Commentary from analysts has flagged that while AI is a genuine tailwind for cybersecurity demand, the valuation bar for PANW has risen to a level that leaves little margin for disappointment. Any softening in billings growth, platform adoption rates or guidance confidence could accelerate the technical deterioration already visible in the charts.
It is worth noting that the broader cybersecurity sector saw some recovery in the days leading up to today’s decline, as an AI safety debate generated renewed interest in the space. That makes today’s sharp reversal in PANW all the more notable from a technical perspective. For those considering a short position, the stock’s history of powerful countertrend rallies and its standing as a high-profile AI beneficiary make this one of the more treacherous setups on today’s list.
4. Autodesk (ADSK) – 12 technical sell signals
Price: $241.73 | Daily change: -2.41%
View the full technical analysis of Autodesk
Autodesk accumulates 12 bearish technical signals with only 3 bull signals in today’s scan, continuing a period of elevated volatility for the 3D design software company. The recent news cycle tells a story of mixed signals: the company beat earnings estimates in its most recent report but offered cautious forward profit guidance whose midpoint came in below analyst expectations, triggering a significant single-session decline. The acquisition of MaintainX has introduced integration costs that are weighing on near-term profitability metrics.
Thin trading volume on certain sessions has amplified price swings, with one intraday move reportedly occurring against a backdrop of volumes running well below typical levels. That kind of liquidity dynamic can exaggerate both declines and recoveries, as the subsequent session demonstrated when the stock rebounded sharply as investors refocused on the longer-term cash flow profile and the company’s raised full-year revenue outlook.
The strong cash flow generation remains a genuine fundamental anchor for Autodesk bulls, and some analysts view the stock as reasonably valued on that basis. However, the technical picture currently reflects the uncertainty introduced by conservative earnings guidance and acquisition-related costs. The wide day-to-day swings make position sizing particularly important for anyone approaching ADSK from the short side, as sharp reversals have already occurred multiple times in recent weeks.
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 today’s list with 12 technical sell signals and 6 bull signals, representing the most balanced bear-to-bull ratio among the five names. The brewer behind Corona and Modelo has endured a prolonged period of underperformance relative to both the broader market and its consumer defensive peers. The stock has been sliding for an extended period, and recent commentary has questioned whether the shares have reached fair value or whether further downside remains plausible.
On the fundamental side, the picture is somewhat nuanced. The company has demonstrated an ability to generate strong free cash flow, and earnings results have not been uniformly poor. However, revenue growth has been under pressure, and the consumer environment for premium imported beer — while resilient — faces questions around pricing power and shifting consumption habits. A change in chief executive has added an additional layer of uncertainty for longer-term investors trying to assess strategic direction.
One analyst estimate placed fair value in the region of $171, suggesting meaningful upside from current levels if that thesis proves correct — a significant headwind for any short position. The consumer defensive classification also provides a degree of natural support during periods of broader market weakness. The technical signals are clearly bearish, but the combination of a depressed valuation and a defensive business model means that short sellers should approach STZ with considerable caution and strict risk management.
Disclaimer: This blog post is produced for informational and educational purposes only and does not constitute financial advice, a solicitation, or a recommendation to buy or sell any security. Technical analysis identifies patterns in historical price data and cannot predict future price movements with certainty. Short selling involves substantial risk, including the potential for unlimited losses. Past performance is not indicative of future results. Always consult a qualified financial adviser before making investment decisions. The Wall Street Stock Investors Club and its contributors may hold positions in securities mentioned.