Each week our technical scanner sweeps the S&P 500 and Nasdaq 100, tallying bullish and bearish indicator readings across momentum, trend and volatility models. Stocks where bearish signals heavily outnumber bullish ones rise to the top of our short-candidate watchlist. Today, 24 August 2026, five names stand out with particularly lopsided readings.
Important risk warning: Short selling involves risks that go beyond those of a conventional long position. Losses on a short trade are theoretically unlimited, borrowing costs can erode returns, and a sudden short squeeze can move against you rapidly. The stocks below are flagged purely on technical grounds and should not be read as recommendations to sell or short any security. Always conduct your own due diligence and consider consulting a financial adviser before acting.
1. Howmet Aerospace (HWM) – 13 technical sell signals
Price: $271.68 | Daily change: -0.72%
View the full technical analysis of Howmet Aerospace
Howmet Aerospace carries the heaviest bearish technical reading on today’s scan, with 13 sell signals against only 3 bullish readings. The stock has delivered an exceptional multi-year run — analysts note it has risen roughly sevenfold over a five-year period — and that extended rally is precisely what makes the technical picture worth watching closely now. Momentum indicators that powered the uptrend may be rolling over at elevated price levels.
From a fundamental standpoint, analyst sentiment remains broadly constructive. Price-target clusters have recently been revised upward into the low-to-mid $300s following stronger-than-expected quarterly results, and aerospace demand continues to support the investment case. However, several valuation studies using discounted cash-flow models suggest the shares may already reflect much of the good news, with at least one analysis concluding the stock looks fully priced relative to intrinsic value.
For technically oriented investors, the divergence between a still-positive fundamental narrative and a deteriorating technical picture is worth monitoring. A stock that has run hard on good news can remain under distribution pressure even as the headlines stay favourable. The 13-to-3 bear-to-bull signal ratio suggests the near-term path of least resistance may be lower, though any fresh positive catalyst could quickly reverse that.
2. Honeywell Technologies (HON) – 12 technical sell signals
Price: $215.90 | Daily change: -1.11%
View the full technical analysis of Honeywell Technologies
Honeywell Technologies, now trading as a standalone entity following the formal separation of its aerospace division, posts 12 bearish technical signals against just 3 bullish ones. The stock slipped more than 1% on the day, adding to what appears to be an emerging downtrend on our momentum and moving-average models. The transition to a narrower, technology-focused business has reset the company’s earnings baseline, introducing a degree of uncertainty that the market is still digesting.
The spinoff of the aerospace unit was completed after board approval earlier this year and was broadly welcomed by investors at the time. However, with the initial re-rating largely behind it, attention is shifting to whether the trimmed-down Honeywell Technologies can generate the organic growth needed to justify its current valuation. Analysts remain divided, with some framing the stock as undervalued relative to peers and others pointing to stretched price-to-earnings ratios given the post-separation earnings outlook.
Technically, the 12-to-3 signal imbalance, combined with the day’s price weakness, suggests sellers may have the upper hand in the near term. Investors considering a short position should note that HON is also highlighted as one of the better dividend payers in the industrial technology space, meaning a meaningful yield supports the share price and limits downside momentum to some extent.
3. PPL Corporation (PPL) – 12 technical sell signals
Price: $34.38 | Daily change: -2.33%
View the full technical analysis of PPL Corporation
PPL Corporation, the Pennsylvania-based regulated utility, also registers 12 bearish technical signals, and its 2.33% single-day decline is the sharpest of the three stocks sharing this score. Utilities have faced headwinds this year as interest rates have remained elevated, compressing the yield-spread advantage that typically attracts income-focused investors to the sector. PPL’s price has underperformed both the broader market and the Nasdaq over the past twelve months, according to recent commentary.
Despite the weak price action, Wall Street analysts maintain a broadly optimistic view of PPL’s longer-term prospects. The company has been cited as a high-growth utility play, partly on the back of its exposure to nuclear energy initiatives and steady capital investment in grid infrastructure. Analysts have generally kept buy-equivalent ratings on the stock, arguing that the utility’s regulated revenue base provides earnings stability even in a challenging rate environment.
The tension between a constructive analyst consensus and a deteriorating technical picture is a classic setup that short sellers look for — but it also represents a clear risk. Utility stocks tend to mean-revert when rate expectations shift, and any signal of easing monetary conditions could trigger a sharp recovery in PPL and its sector peers. The 12-to-4 bear-to-bull ratio warrants attention, but position sizing discipline is essential here.
4. Evergy (EVRG) – 11 technical sell signals
Price: $80.92 | Daily change: -2.69%
View the full technical analysis of Evergy
Evergy, the Kansas City-based electricity provider, records the steepest daily decline among today’s five candidates, falling nearly 2.7% to bring its bearish signal count to 11 against 4 bullish readings. The stock’s recent weakness is notable because, on the surface, Evergy’s fundamental story has improved materially this year. Management raised its retail load growth guidance after signing five large data-centre energy supply agreements, a development that lifted the growth profile well above that of a typical regulated utility.
However, as at least one analyst commentary noted, that positive data-centre narrative may already be reflected in the share price following the run-up earlier in the year. When good news is already priced in, stocks can sell off even in the absence of negative catalysts — and Evergy’s technical indicators appear to be signalling exactly that dynamic. The company also beat second-quarter earnings estimates comfortably, yet the shares have continued to drift lower in the weeks since the report.
Evergy does offer investors a dividend yield of around 3.4% with announced plans for ongoing dividend growth, which provides a degree of fundamental support and represents a cost of carry consideration for anyone holding a short position. The 11-to-4 signal imbalance is meaningful but not extreme, and the dividend cushion means prospective short sellers should be particularly alert to risk management.
5. Northrop Grumman (NOC) – 11 technical sell signals
Price: $551.03 | Daily change: -2.28%
View the full technical analysis of Northrop Grumman
Northrop Grumman stands apart from the other four candidates in one important respect: it carries zero bullish technical signals alongside its 11 bearish readings. That is a notably clean sweep on the bearish side, suggesting broad-based deterioration across momentum, trend-following and oscillator indicators simultaneously. The stock fell 2.28% on the day, extending recent weakness even as contract news flow has been broadly positive.
Indeed, the fundamental backdrop for Northrop remains active. Within the past week the company completed a milestone delivery for the US Navy and was awarded a Marine Corps contract for autonomous aircraft development alongside Kratos, both of which contributed to a sharp intraday bounce earlier in the period. These contract wins underscore the company’s strong position in advanced defence systems, and the quarterly dividend was recently reaffirmed. One valuation model places the shares at a modest premium to fair value, which may partly explain the selling pressure.
For technically minded investors, the 11-to-0 signal ratio is the starkest reading on today’s list and deserves careful attention. That said, defence contractors can gap higher on unexpected government contract announcements or geopolitical developments with very little warning — a risk that is particularly acute for short sellers. The absence of any bullish technical signals makes NOC the most technically compromised name on the list, but the event-risk profile of the sector demands disciplined position 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 does not guarantee future results. Short selling carries significant risks, including potentially unlimited losses. Past performance is not indicative of future results. Always conduct your own research and seek independent financial advice before making any investment decision. The Wall Street Stock Investors Club and its contributors may or may not hold positions in the securities mentioned.