Our technical scanner runs daily across the S&P 500 and Nasdaq 100, measuring a broad range of momentum, trend and oscillator indicators to flag stocks that are showing meaningful directional bias. On 28 September 2026, the screen has thrown up five names where bearish signals heavily outnumber bullish ones. Short candidates are stocks where the weight of technical evidence suggests continued downside pressure, making them potential candidates for investors who employ short-selling strategies.
Important risk warning: Short-selling involves risks that are materially higher than those of holding a long position. Losses on a short position are theoretically unlimited, margin requirements can be called at any time, and a single piece of positive news can trigger a sharp short squeeze. The analysis below is purely technical in nature and does not constitute financial advice. Always size positions carefully and use appropriate risk-management tools.
1. Leidos (LDOS) – 13 technical sell signals
Price: $133.78 | Daily change: -3.88%
View the full technical analysis of Leidos
Leidos has been under consistent pressure for much of 2026, with the stock regularly underperforming both the S&P 500 and the broader defence technology peer group. While the company did secure a sizeable follow-on government contract worth $301 million in August, that positive catalyst appears to have done little to arrest the medium-term decline in share price momentum.
The technical picture is notably weak, with 13 bearish signals against just 3 bullish ones. A drop of nearly 4% in a single session is a meaningful move for an established defence contractor, and it reinforces the pattern of the stock failing to hold any recovery attempts. Analyst sentiment, while described as cautiously optimistic, has not translated into sustained buying interest.
From a news-flow perspective, the stock has repeatedly lagged the broader index on down days while failing to capture the full upside on positive sessions. This asymmetric behaviour is often a warning sign that institutional selling pressure is persistent. Bears should nonetheless be aware that government contract wins can generate sudden, sharp re-ratings and that defence stocks can benefit quickly from changes in geopolitical sentiment.
2. Omnicom Group (OMC) – 13 technical sell signals
Price: $81.76 | Daily change: -5.03%
View the full technical analysis of Omnicom Group
Omnicom is the most notable decliner among today’s candidates, shedding more than 5% in a single session. The advertising and media group had previously been trading in the mid-to-high $70s range, meaning the move to $81.76 during the session represents a sharp spike followed by significant intraday volatility — a pattern that frequently signals distribution by larger holders rather than genuine directional strength.
The fundamental backdrop is mixed at best. While Omnicom’s media division reported $3.3 billion in new billings during the first half of 2026, and second-quarter revenues beat Street expectations, the stock fell on that earnings report — a classic bearish divergence between fundamentals and price action. When a stock cannot rally on good news, it often indicates that the market is looking further ahead with less confidence.
The technical scanner records 13 bearish signals against 6 bullish ones. The bull signals are not entirely negligible, and a dividend payout in the recent period may attract income-oriented buyers at certain levels. Short sellers should factor in that advertising stocks can rebound sharply if macro data improves or if merger and acquisition speculation resurfaces around the name.
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
A near-10% single-session decline is exceptional even in volatile technology names, and it places Palo Alto Networks firmly in focus for technically-minded bearish investors. What makes this move particularly noteworthy is the context: PANW had surged more than 12% in mid-September on the back of strong fourth-quarter earnings and growing enthusiasm around its artificial intelligence security offerings, including the newly launched Unit 42 Continuous Frontier AI Defense service.
The sharp reversal from levels around $377 to the current $328 area suggests that the post-earnings rally may have exhausted itself quickly. Questions around valuation are increasingly prominent, with some analysts asking whether the stock’s AI-driven premium is now fully reflected in the price. Support levels identified in recent technical commentary are now being tested, and a failure to hold them could open further downside.
The scanner shows 13 bearish signals against only 3 bullish ones, a strongly skewed reading. That said, PANW remains one of the structurally strongest businesses in large-cap cybersecurity. Short positions in high-quality growth stocks with genuine secular tailwinds carry above-average squeeze risk, and any incremental positive news on AI security adoption could trigger a rapid recovery. Position sizing and stop discipline are 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 has had a turbulent year technically, oscillating between the high $200s and periods of meaningful weakness. The stock is down roughly 2.4% on the session, and the scanner registers 12 bearish signals against just 3 bullish ones. Recent price history has seen the stock struggle to maintain momentum even after beating earnings estimates, largely because guidance on forward profitability disappointed, in part due to acquisition-related costs following the MaintainX deal.
The compression in GAAP operating margin guidance appears to have weighed on investor confidence, with the stock declining sharply in early September despite an earnings beat. This is a pattern that often leads to a prolonged period of multiple compression, particularly when the market is already cautious about technology spending.
On the more constructive side, some analysts have argued the stock may be undervalued relative to its cash flow generation, and there are legitimate long-term growth arguments centred on the low technology penetration in Autodesk’s core construction and design markets. For bears, these fundamental arguments represent a real risk. The technical signals are clear today, but Autodesk’s underlying cash flow strength could attract value-oriented buyers at lower levels, potentially limiting the downside or creating sharp counter-trend rallies.
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 bearish signals against 6 bullish ones — the least extreme bear-to-bull ratio on the screen today, but still a clearly skewed reading. The stock recently touched a 52-week low, a significant technical event for a consumer staples name that owns some of the most recognisable imported beer brands in the United States, including Corona and Modelo.
A price target reduction from at least one analyst and concerns flagged ahead of second-quarter earnings — with consensus EPS expectations pointing lower year-on-year — have weighed on sentiment. When analysts trim targets on a stock already at a 52-week low, it tends to confirm that the near-term earnings visibility is limited and that institutional confidence in a near-term recovery is fading.
The relative session decline of under 1% is modest compared to others on this list, which may reflect a degree of valuation support beginning to emerge. Consumer staples stocks with strong brand portfolios tend to attract defensive buyers during broader market weakness, which could limit downside and create short squeeze conditions. Bears should monitor the upcoming earnings release closely, as any positive surprise on volumes or margins could generate a meaningful reversal from deeply oversold levels.
Disclaimer: This article 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 and volume data and cannot guarantee future results. Short-selling carries significant additional risks including unlimited loss potential, margin calls and short squeeze events. Always conduct your own research and consult a qualified financial adviser before making any investment decision. The Wall Street Stock Investors Club does not hold positions in any of the stocks mentioned at the time of publication.