Our technical scanner runs daily across the S&P 500 and Nasdaq 100, scoring each stock on a broad set of momentum, trend and oscillator indicators to identify both bullish and bearish setups. On 25 August 2026, the five names below generated the highest number of bearish technical signals, making them the leading short candidates flagged by the model. A short candidate is a stock where the weight of technical evidence suggests deteriorating price momentum and potential further downside.
Important risk warning: Short selling is considerably more complex and risky than buying equities. Losses on a short position are theoretically unlimited, margin requirements add financial leverage, and stocks can rally sharply on news at any time. The technical signals below are analytical observations only and should never be treated as a recommendation to sell short. Always consult your own risk tolerance, investment objectives and, where appropriate, a qualified financial adviser before acting.
1. Howmet Aerospace (HWM) – 12 technical sell signals
Price: $263.29 | Daily change: -3.09%
View the full technical analysis of Howmet Aerospace
Howmet Aerospace shares fell more than 3% on 25 August, and the scanner registered 12 bearish signals against only 3 bullish ones — the joint-highest bear score in today’s screen. The technical picture stands in notable contrast to the fundamental backdrop, which has been broadly supportive: the company delivered a strong second-quarter earnings report in mid-August, completed an aerospace acquisition and raised its full-year outlook, all of which were well received by the market at the time.
Analyst sentiment remains constructive, with price targets from several research houses clustering in the low-to-mid $300s following upward earnings revisions. Zacks Research also recently highlighted improving earnings estimate momentum as a potential catalyst. That said, technical signals operate independently of near-term fundamentals, and the current configuration of momentum and trend indicators is flashing caution.
For technically-oriented traders, the divergence between strong fundamentals and weakening price action is itself worth monitoring. A stock that fails to sustain gains on good news can sometimes indicate that positive expectations are already priced in. Investors considering a short position should be acutely aware that the fundamental tailwinds here represent a significant source of upside risk.
2. RTX Corporation (RTX) – 12 technical sell signals
Price: $209.22 | Daily change: -0.33%
View the full technical analysis of RTX Corporation
RTX Corporation shares eased modestly on 25 August but the scanner’s 12 bearish signals — matched only by Howmet at the top of today’s list — suggest underlying technical deterioration that a quiet session can obscure. The stock has attracted substantial search interest on financial platforms in recent weeks, which can sometimes precede periods of elevated volatility in either direction.
From a fundamental standpoint, RTX delivered a notably strong second quarter. Adjusted earnings per share came in well above consensus, revenues grew organically at a double-digit rate across commercial and defence divisions, and the company reported a backlog approaching $290 billion. Those figures underline the operational momentum the business is carrying into the second half of the year.
However, a large backlog and strong earnings can also mean that expectations are already elevated, leaving the stock more sensitive to any disappointment. Technically, the current signal cluster warrants attention from traders who monitor momentum reversals. Short sellers should weigh the very real risk that robust order books and earnings growth could reassert themselves as price drivers, making this a particularly high-risk short candidate despite the bearish technical reading.
3. Take-Two Interactive (TTWO) – 12 technical sell signals
Price: $233.50 | Daily change: -2.55%
View the full technical analysis of Take-Two Interactive
Take-Two Interactive fell by more than 2.5% on 25 August and the technical scanner assigned it 12 bearish signals alongside just 2 bullish ones — the lowest bull-signal count in today’s entire shortlist. The stock has underperformed the broader market over the past twelve months, even as analyst sentiment has remained broadly positive, creating an ongoing tension between Wall Street optimism and actual price delivery.
The news flow around Take-Two has been dominated by the much-anticipated release of Grand Theft Auto VI. The company has confirmed an official launch date, unveiled full pricing details and recently highlighted a digital-only launch approach. While these announcements carry significant commercial potential, the market appears to be in a “show me” phase, withholding sustained re-rating until launch execution is demonstrated.
First-quarter fiscal 2027 net bookings figures released in early August provided some near-term datapoints, but the investment case for Take-Two remains heavily tied to the GTA VI launch outcome. For potential short sellers, the bear case rests largely on technical momentum, though the binary nature of a major game launch means the risk of a sharp upside move on positive news is very real and should be carefully considered.
4. CDW Corporation (CDW) – 11 technical sell signals
Price: $132.51 | Daily change: -3.45%
View the full technical analysis of CDW Corporation
CDW Corporation was the largest daily decliner in today’s top five, shedding more than 3.4% on 25 August, and the technical scanner flagged 11 bearish signals against 4 bullish ones. The IT solutions distributor has been a consistent underperformer relative to both the broader market and the technology sector over the past year, and analysts have maintained a somewhat cautious stance on the stock as recently as yesterday, according to Barchart data.
CDW’s business model is closely tied to corporate IT spending cycles. The ongoing shift toward cloud infrastructure and AI-driven hardware refresh programmes could either benefit or bypass traditional value-added resellers, depending on how enterprise procurement evolves. The company has flagged its AI focus and has a mixed-securities shelf filing in place, suggesting ongoing capital flexibility, but these factors have yet to translate into meaningful re-rating.
From a technical perspective, persistent underperformance combined with today’s sharp sell-off and an elevated bear-signal count paints a cautious near-term picture. Investors considering the short side should note, however, that a stock which has already underperformed materially carries its own set of risks — not least the possibility of a value-driven bounce or a positive corporate catalyst reversing the trend abruptly.
5. DuPont de Nemours (DD) – 11 technical sell signals
Price: $136.67 | Daily change: -1.20%
View the full technical analysis of DuPont de Nemours
DuPont de Nemours rounds out today’s top five with 11 bearish technical signals and 5 bullish ones — the most balanced bear-to-bull ratio in the group, though still firmly skewed to the downside. The specialty chemicals and materials company has faced a challenging macro environment characterised by currency headwinds and uneven end-market demand, factors that prompted at least one analyst to downgrade the stock from a stronger conviction rating earlier this year.
Despite those pressures, some analysts have argued that DuPont looks undervalued at current levels, pointing to high-quality earnings and relative strength in its healthcare and aerospace-facing segments. A reverse stock split approved earlier in the year and reaffirmed full-year guidance were seen as stabilising signals, though concerns about third-quarter guidance remain a potential overhang for the share price in the near term.
Technically, the combination of a modest daily decline and 11 bearish signals suggests that momentum has not yet turned in the bulls’ favour, even if the valuation argument has some merit. Prospective short sellers should factor in the possibility that any resolution of macro headwinds — particularly on the currency front — or a better-than-feared guidance update could trigger a swift reversal. The relatively higher bull-signal count here compared with others in today’s list adds an extra layer of caution.
Disclaimer: This blog post is produced solely for informational and educational purposes and does not constitute investment advice, a recommendation to buy or sell any security, or an invitation to engage in any investment activity. Technical analysis identifies patterns in historical price data and cannot guarantee future results. Short selling involves significant risks, including potentially unlimited losses, and is not suitable for all investors. Past performance is not indicative of future results. Members of the Wall Street Stock Investors Club should conduct their own research and seek independent financial advice before making any investment decisions.