Our technical analysis scanner runs daily across the S&P 500 and Nasdaq 100, evaluating each stock against a broad set of momentum, trend, and oscillator indicators. The results for 23 October 2026 highlight five names where bearish signals significantly outnumber bullish ones. Short candidates are stocks where the technical picture suggests continued downside pressure — they are not recommendations to sell, but rather names worth watching closely if you have a bearish thesis.
Important risk warning: Short selling carries substantially greater risk than holding a long position. Losses on a short trade are theoretically unlimited, margin requirements add complexity, and a sudden positive catalyst can trigger sharp short squeezes. Always size positions carefully and use appropriate risk management tools before considering any short strategy.
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 scan with 13 sell signals against only 3 bull signals, and a sharp single-session decline of nearly 4% underscores the technical weakness. The stock has been on an uneven trajectory for much of the year, with multiple sessions where it underperformed the broader S&P 500. A quarterly earnings preview published mid-October noted the company carries a market capitalisation of roughly $15.6 billion, and attention is now turning to whether upcoming results can reverse the prevailing sentiment.
Despite a brief uptick in late October — where the stock closed above $127 and marginally outpaced the index — the longer-term price trend has been one of steady deterioration from earlier-year levels. An August commentary described the shares as trading below fair value relative to the business’s contract-winning activity, yet the market has not rewarded that fundamental argument with sustained buying interest.
From a technical standpoint, the weight of 13 bearish indicators suggests momentum remains firmly to the downside. Traders considering a short position should be aware that any positive earnings surprise or new contract announcement could quickly change the picture, making disciplined stop-loss management essential.
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 fell more than 5% on the day, the steepest single-session decline among today’s five candidates, even as the company reported third-quarter results that beat consensus earnings estimates. Organic revenue growth from core operations came in at a solid 7.2% for the quarter, and full-quarter sales rose meaningfully year on year — yet the market’s reaction was clearly negative, suggesting investors had already priced in optimistic expectations or are concerned about the broader advertising environment.
Analyst opinion remains mixed. JPMorgan trimmed its price target modestly while Morgan Stanley moved its target slightly higher, illustrating the divided views on the stock’s near-term direction. A mid-October commentary suggested the shares could be materially undervalued following a change in senior finance leadership, a perspective that contrasts sharply with today’s sell-off and the 13 bearish technical signals our scanner has identified.
With 6 bull signals still present, the technical picture is not entirely one-sided, and the solid fundamental backdrop introduces meaningful risk for short sellers. A reassessment of the earnings results by institutional investors over the coming sessions could spark a recovery, so caution is warranted on the short side.
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. The cybersecurity firm had been a notable performer earlier in the year, with its share price reportedly doubling over a six-month stretch — a run that some analysts now argue has left the valuation stretched well beyond what underlying growth can justify. Commentary from Seeking Alpha characterised the valuation as excessive relative to the growth story, however compelling that story may be in the context of AI-driven security demand.
The AI cybersecurity theme remains a genuine structural tailwind for the company, and Deutsche Bank highlighted it alongside a small group of peers as a standout beneficiary of enterprise AI spending. That positive narrative, however, appears to have been fully absorbed — and then some — by the market prior to today’s sharp reversal. Technical indicators now show 13 sell signals against just 3 bull signals, a ratio that suggests the correction may have further to run.
For short sellers, the elevated volatility cuts both ways. A stock that can rise 100% in six months can also stage rapid recoveries. Fundamental enthusiasm around AI cybersecurity is strong, and any positive industry data point or earnings beat could trigger a significant reversal. Risk management is especially 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 today’s list with 12 technical sell signals against only 3 bullish ones, and the stock has delivered a frustrating performance for shareholders over the past year, with one analysis noting a decline of nearly 25% over that period. The design and engineering software group unveiled updates to its small business platform at its annual AU conference in mid-October, but the market’s response was indifferent — shares fell on the same day the announcement was made.
The bullish case for Autodesk rests on its asset-light business model, free cash flow generation, and exposure to AI-driven productivity tools in construction and manufacturing workflows. A Seeking Alpha piece earlier in the month argued the stock represents a buying opportunity at current levels, citing margin expansion prospects and the potential contribution from its MaintainX acquisition. These are credible arguments, and analysts pointing to a low forward earnings multiple relative to historical norms give the bull case some structural support.
Nevertheless, the technical evidence as of today is firmly negative, and the stock has consistently lagged the broader market on down days in recent weeks. Short sellers should note that the fundamental valuation argument could attract long-term buyers at these levels, acting as a natural floor that limits downside.
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 the list with 12 sell signals and 6 bull signals, the latter count suggesting the stock is not in outright freefall from a technical perspective but is nonetheless showing more weakness than strength. The beverage alcohol group has had a difficult year, with shares touching 11-year lows earlier in 2026 and analysts cautioning investors against attempting to catch what was described as a falling knife ahead of second-quarter results.
A more recent quarterly report for calendar Q3 2026 delivered revenue above expectations, with sales growing just over 6% year on year, yet the stock still declined following the release as guidance disappointed. The company has continued to pursue bolt-on acquisitions — including a deal for a spirit-based ready-to-drink brand — in an effort to diversify its portfolio and capture shifting consumer preferences. Jim Cramer revisited the stock in early October following what he described as an unexpected reversal in its trend.
With a dividend yield that has risen above 3.5% as the price has fallen, income-oriented investors may begin to see value, which could provide a measure of support. Goldman Sachs, while cutting its price target, has maintained a constructive view on the stock. Traders considering a short position should weigh these income and valuation support factors carefully against the prevailing technical weakness.
Disclaimer: This blog post is provided for informational and educational purposes only and does not constitute investment advice, a solicitation, or a recommendation to buy or sell any security. Technical analysis involves inherent limitations and past signals are not indicative of future performance. Short selling involves significant risks, including potentially unlimited losses. Always conduct your own due diligence 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.