Each trading day, our technical scanner evaluates every stock in the S&P 500 and Nasdaq 100, counting bullish and bearish indicator readings across momentum, trend, and volume metrics. Stocks with the highest number of bearish signals relative to bullish ones rise to the top of our short-candidates watchlist. Today, 21 August 2026, five names stand out with particularly lopsided bear-to-bull ratios, suggesting meaningful technical deterioration.
Important risk warning: Short selling carries risks that are fundamentally different from — and in many ways greater than — those of buying stocks. Losses on a short position are theoretically unlimited, since a stock’s price can rise without bound. Borrowed shares also incur costs, and positions can be subject to forced buy-ins. The signals below are purely technical in nature and should never be treated as a recommendation to sell short. Always conduct your own due diligence and consult a qualified financial adviser before acting.
1. AutoZone (AZO) – 15 technical sell signals
Price: $2,961.99 — daily change: −3.73%
View the full technical analysis of AutoZone
AutoZone tops today’s bearish rankings with 15 sell signals against just 4 bullish readings — the joint-highest bear score on our scanner. The stock shed nearly 4% in today’s session alone, extending what has been a prolonged period of underperformance relative to the broader consumer discretionary sector. Commentary circulating in mid-July noted that AZO has consistently lagged its sector peers, with analysts pointing to energy price volatility, shifting retail trends, and inflationary pressures on the core do-it-yourself customer base as headwinds.
From a fundamental backdrop, AutoZone’s share price has declined sharply from the $4,233 levels seen in September 2025, representing a significant drawdown that technical indicators now appear to be confirming with momentum and trend signals aligned to the downside. Revenue growth concerns have surfaced periodically, and the stock has a pattern of reacting negatively when results disappoint Wall Street expectations.
With 15 bearish technical readings and only 4 bullish counterweights, the signal skew is among the most extreme we track. Bears should nonetheless remain cautious: AZO is a capital-light, cash-generative business with a long history of share buybacks that can support the price and inflict sharp losses on short positions during any sentiment recovery.
2. Howmet Aerospace (HWM) – 15 technical sell signals
Price: $273.64 — daily change: −3.47%
View the full technical analysis of Howmet Aerospace
Howmet Aerospace matches AutoZone’s bear-signal count at 15, but carries an even more extreme signal skew with only a single bullish reading. The stock dropped 3.47% today, a notable move for a name that has otherwise attracted considerable positive attention from the analyst community in recent months. Recent commentary has highlighted strong commercial aerospace revenues and a completed aerospace acquisition, suggesting the fundamental story remains broadly constructive — which is precisely what makes the technical deterioration here worth watching carefully.
The contrast between the upbeat fundamental narrative and the deeply bearish technical picture is striking. Analysts have been raising earnings estimates, and second-quarter results released in mid-August were reportedly solid, with commercial aerospace described as the company’s primary growth engine. Yet price action has clearly softened, with today’s decline adding to a pattern that our momentum and trend indicators are flagging.
This divergence between improving fundamentals and weakening technicals is a classic situation that demands caution from would-be shorts. If the fundamental case reasserts itself — and there is considerable institutional conviction that it may — a short position could face a swift and painful reversal. The 15-to-1 bear signal ratio is notable, but context matters greatly here.
3. Walmart (WMT) – 14 technical sell signals
Price: $103.84 — daily change: −9.15%
View the full technical analysis of Walmart
Walmart’s near 9.2% single-session decline — the sharpest move of any stock on today’s list — reflects a jarring earnings reaction that has pushed the retail giant into technically damaged territory. The company released its fiscal second-quarter 2026 results on 20 August, beating on headline sales, but the market’s attention fixed firmly on weaker-than-expected US comparable sales growth of approximately 2.6%, which fell well short of analyst forecasts in the mid-3% range. A softer third-quarter outlook compounded the disappointment.
The fundamental context adds nuance. Walmart did benefit from a substantial tariff-related windfall of nearly $2.9 billion, which it indicated would be deployed to support pricing and operations. However, investors appeared to interpret this as a one-time cushion masking underlying consumer spending softness rather than evidence of structural strength. Valuation concerns had already been flagged by several analysts ahead of the print, with the stock carrying a premium multiple that left little room for execution shortfalls.
Our scanner registered 14 bearish signals against 8 bullish ones — the most balanced bear-to-bull ratio on this list — which means the technical picture, while clearly negative, is not as uniformly dire as some other names. Walmart’s sheer scale, defensive characteristics, and global diversification make it a genuinely risky short candidate despite today’s dramatic move.
4. Fifth Third Bancorp (FITB) – 13 technical sell signals
Price: $54.50 — daily change: −0.84%
View the full technical analysis of Fifth Third Bancorp
Fifth Third Bancorp appears on our bearish radar with 13 sell signals and only 2 bullish readings, despite a more modest daily decline of less than 1%. The technical deterioration here appears to be the product of a gradual trend shift rather than a single shock event. The stock had enjoyed a strong multi-year run, and valuation questions began surfacing publicly as early as June, with analysts debating whether the rally had priced in too much of the positive outlook.
The fundamental backdrop is mixed. Second-quarter 2026 earnings pointed to early benefits from the bank’s merger with Comerica, and management expressed confidence in the profitability trajectory. The bank also recently earned recognition as the United States’ Best Bank from Euromoney for 2026 — a notable accolade — and launched an artificial intelligence-powered mobile interface. These are not the hallmarks of a company in fundamental distress.
The disconnect between operational progress and deteriorating technicals suggests the market may be recalibrating expectations after a period of strong price appreciation. For short sellers, the relatively modest daily move and still-active positive news flow represent real headwinds. Regional bank stocks can also be sensitive to interest rate expectations, which introduces macro risk into any directional trade on FITB in either direction.
5. RTX Corporation (RTX) – 13 technical sell signals
Price: $212.29 — daily change: −3.66%
View the full technical analysis of RTX Corporation
RTX Corporation rounds out today’s list with 13 bearish signals and just 1 bullish reading — the second-sharpest signal skew after Howmet. The stock fell 3.66% today, having recently printed a fresh 52-week high above $214. That near-term peak followed an exceptional second quarter in which adjusted earnings came in roughly 14% above consensus expectations, with double-digit revenue growth year-over-year. A major $22.9 billion defence contract win, announced in mid-August, further reinforced the bullish fundamental thesis.
The irony of RTX featuring on a bearish technical list while simultaneously delivering one of its strongest fundamental quarters in recent memory is not lost on experienced investors. What the technicals may be capturing is a classic post-run exhaustion dynamic: the stock surged into strong results and a high-profile contract win, and the price action since that peak suggests buyers may have already expressed their enthusiasm. When positive catalysts are well-anticipated, the subsequent technical reaction can be counterintuitive.
With only a single bullish technical reading to weigh against 13 bearish ones, the momentum signals are clearly pointed lower in the near term. However, RTX is a defence and aerospace giant with a diversified contract book, pricing power, and strong institutional ownership — all of which can create formidable resistance to any sustained short position if sentiment stabilises.
Disclaimer: This blog post is produced for informational and educational purposes only. It does not constitute investment advice, a solicitation, or a recommendation to buy or sell any security. Technical analysis identifies patterns in historical price and volume data; it does not guarantee future results. Short selling involves substantial risk, including the potential for unlimited losses. Past performance is not indicative of future results. Always conduct your own independent research and consult a licensed financial adviser before making any investment decision. The Wall Street Stock Investors Club and its contributors may hold positions in securities mentioned in this post.