Our technical indicator scanner runs daily across the S&P 500 and Nasdaq 100, measuring the balance of bullish and bearish signals generated by a broad range of momentum, trend, and volume indicators. Each Friday we highlight the stocks where bearish signals are most heavily stacked — these are potential short candidates: names where the technical picture suggests underlying selling pressure that may not yet be fully reflected in the price.
Today’s scan is dated 31 July 2026. The five stocks below carry the highest bear-signal counts in today’s run.
Important risk warning: Short selling is a high-risk strategy. Unlike a long position, losses on a short trade are theoretically unlimited, and stocks can remain technically oversold for extended periods before reversing sharply. Margin requirements, borrow costs, and short squeezes add further layers of risk. The analysis below is purely technical and does not constitute financial advice. Always apply careful position sizing and risk management before considering any short position.
1. Fair Isaac (FICO) – 17 technical sell signals
Price: $1,139.54 | Daily change: -17.01%
View the full technical analysis of Fair Isaac
Fair Isaac tops today’s bearish leaderboard with 17 sell signals against just 5 bull signals, and the price chart makes the reason immediately apparent. In mid-July the stock suffered a sharp decline of around 15% in a single session after the company’s third-quarter revenues came in below Wall Street consensus. That kind of gap-down on high volume typically leaves a significant area of overhead resistance as investors who bought before the miss look to exit on any subsequent bounce.
The earnings miss is the dominant catalyst here. Revenue of $674.2 million for the quarter fell short of analyst expectations, raising questions about the durability of the premium valuation that FICO has long commanded. While some analysts have subsequently argued the stock may be modestly undervalued on a cash-flow basis, and the five-year total return remains impressive, the near-term technical damage is considerable. A stock that has declined 17% on the day of our scan has clearly broken important support levels.
With a full 17 bearish technical indicators firing simultaneously — covering momentum oscillators, moving average crossovers, and likely volume-based signals — the technical picture is among the most uniformly negative we have seen in this scan cycle. Prospective short sellers should nonetheless be cautious: beaten-down, high-quality franchises can attract value buyers quickly, and any positive revision to the earnings outlook could trigger a swift recovery.
2. Altria (MO) – 16 technical sell signals
Price: $67.94 | Daily change: -9.32%
View the full technical analysis of Altria
Altria, the tobacco and consumer staples giant, carries 16 bearish technical signals in today’s scan, with only 6 bullish counterweights. A daily decline of more than 9% is an unusually large move for a traditionally defensive, dividend-focused name, and it has clearly done significant damage to the technical structure of the chart.
The fundamental backdrop is mixed. On one hand, the company continues to attract income investors with its long track record of dividend increases and is making tangible progress on its transition toward smoke-free products. On the other hand, at least one analyst commentary published in late July argued that the shares were trading at a valuation premium — roughly 30% above what a conservative earnings-based framework would suggest — even before the latest price drop. That view had already been circulating before today’s selloff, which may indicate that the market is now beginning to price in those valuation concerns more aggressively.
For short sellers, the central tension with Altria is its dividend yield, which becomes more attractive as the share price falls and can draw income-seeking buyers at lower levels. This acts as a natural brake on prolonged declines. The technical signals are clearly bearish, but the yield support makes this a trickier short candidate than a pure growth stock in freefall. Position sizing and stop discipline are especially important here.
3. Exelon (EXC) – 15 technical sell signals
Price: $45.58 | Daily change: -3.08%
View the full technical analysis of Exelon
Exelon stands out not only for its 15 bearish signals but for the near-total absence of bullish counterbalance — our scanner recorded just 1 bull signal. That kind of lopsided reading (15 to 1) suggests broad-based technical deterioration across momentum, trend-following, and possibly volume indicators, rather than a single isolated signal firing. The stock is down a more modest 3% on the day, but the cumulative technical picture points to a sustained weakening trend rather than a one-day event.
The fundamental picture for Exelon is somewhat nuanced. Second-quarter adjusted operating earnings came in at $0.43 per share, up from $0.39 a year earlier, and the company reaffirmed its guidance — both of which are supportive facts. ComEd, its Illinois utility, also launched a Time-of-Day Pricing programme that drew analyst attention. However, there is commentary suggesting Exelon may be underperforming the broader utilities sector, and comparisons with peer utilities have raised questions about relative value.
Utilities tend to be interest-rate sensitive, and any shift in the rate environment can weigh on the entire sector simultaneously. Short sellers should be aware that regulatory and rate-case outcomes can move utility stocks sharply and unpredictably, and that the dividend provides some floor to valuation, much as it does with Altria.
4. L3Harris Technologies (LHX) – 15 technical sell signals
Price: $271.90 | Daily change: -8.61%
View the full technical analysis of L3Harris Technologies
L3Harris Technologies, a major US defense and aerospace contractor, posts 15 bearish signals against 8 bullish ones in today’s scan. The 8 bull signals are the highest of any name on today’s list, suggesting some genuine underlying support — which makes the 8.6% single-day decline all the more noteworthy, as it has clearly overwhelmed near-term buying interest and pushed the majority of indicators into bearish territory.
The operational news from L3Harris is not, on its face, alarming. The company reported second-quarter revenues of $5.88 billion, representing year-on-year growth of around 8%, and the earnings call was described as highlighting strong results. The company also secured a notable U.S. Space Force contract for satellite construction in mid-July. These are genuine fundamental positives, and they likely explain the relatively elevated bull-signal count.
The disconnect between a strong operational quarter and a sharp share price decline may reflect broader sector rotation out of defense names, valuation concerns following a period of strong appreciation — the stock has delivered a substantial multi-year return — or macro-level anxiety. For technically minded short sellers, the signal count is objectively bearish, but the combination of contract wins, revenue growth, and 8 competing bull signals means this is a lower-conviction short candidate than FICO or Exelon. A reversal of the selling pressure could be swift.
5. Norwegian Cruise Line Holdings (NCLH) – 15 technical sell signals
Price: $18.72 | Daily change: -9.78%
View the full technical analysis of Norwegian Cruise Line Holdings
Norwegian Cruise Line rounds out the list with 15 bearish signals and 6 bullish ones. The stock is approaching its fifth consecutive week of losses, and the nearly 10% decline recorded on our scan date underscores the severity of the current downtrend. For a consumer discretionary name in the travel sector, sustained weekly losses of this kind can indicate a meaningful shift in investor sentiment rather than routine volatility.
The earnings picture is somewhat paradoxical. Norwegian beat second-quarter estimates, which might ordinarily provide relief to the share price. However, the company simultaneously guided investors toward near-term demand challenges, with the expectation of a gradual recovery rather than an immediate return to strength. Markets tend to price forward-looking guidance more heavily than backward-looking results, and that cautious outlook appears to have outweighed the earnings beat in investors’ minds. One valuation model suggests the stock trades at a modest discount to intrinsic value, but that has not been sufficient to arrest the selling.
Cruise operators carry substantial fixed costs and significant debt loads — legacies of the industry’s restructuring in recent years — which means any softening of demand has an outsized impact on earnings. Short sellers should note, however, that deeply beaten-down consumer names in travel can recover sharply on any positive demand or macro catalyst, particularly heading into the key booking season.
Disclaimer: This article is produced by the Wall Street Stock Investors Club for educational and informational purposes only. It does not constitute financial advice, a recommendation to buy or sell any security, or a solicitation of any investment. All investing involves risk, and short selling involves additional and potentially unlimited risk. Past technical patterns are not a guarantee of future price behaviour. Always conduct your own research and consult a qualified financial adviser before making any investment decision.