Each week our technical scanner sweeps the S&P 500 and Nasdaq 100, tallying bullish and bearish indicator readings across momentum, trend, and volatility measures. Stocks where bearish signals significantly outnumber bullish ones move to the top of our watchlist as potential short candidates. Today, 24 August 2026, five names stand out with particularly heavy technical sell pressure.
Important risk warning: Short selling involves risks that go well beyond those of a standard long position. Losses on a short trade are theoretically unlimited, borrowing costs can erode returns, and a sudden price spike or short squeeze can inflict rapid damage. The signals below are technical observations only and should never be treated as recommendations to sell short. Always manage position sizing carefully and consider using defined-risk instruments such as put options if you want bearish exposure.
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 tops today’s bearish scan with 13 sell signals against just 3 bull signals – the widest imbalance on the list. The stock has been a remarkable long-term performer, delivering roughly a sevenfold gain over the past several years, but that very success is now prompting valuation questions. Analyst commentary from mid-2026 notes that price targets are clustering in the low-to-mid $300s, yet the stock’s own discounted cash-flow metrics suggest the shares may already reflect a generous premium for the underlying business.
More recent coverage has revisited whether the post-run valuation remains justified, with some analysts flagging that the aerospace component maker may have entered fully-priced territory even as demand from civil and defence customers stays solid. The bears are not arguing the business is broken – aerospace fundamentals remain supportive – but rather that the price may have run ahead of near-term earnings delivery.
From a purely technical standpoint, a 13-to-3 bear-to-bull ratio is unusually one-sided and worth monitoring closely, even if the fundamental backdrop remains constructive. Investors already long HWM may wish to review stop-loss levels, while would-be short sellers should remain mindful of the stock’s history of sharp upward moves and the potential for valuation upgrades if aerospace orders surprise to the upside.
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 operating as a standalone automation-focused entity following its corporate restructuring, carries 12 technical sell signals today against only 3 bullish readings. The company executed a one-for-two reverse stock split earlier in 2026, after which management updated its full-year guidance – a combination of events that can cloud near-term price discovery and sometimes introduces technical weakness as the shareholder base adjusts.
On the operational side, the Process Automation segment has been a persistent source of disappointment, with lower catalyst shipments and project delays continuing to weigh on divisional revenue. JPMorgan trimmed its price target on the stock in July, and the ongoing leadership reshuffle in the Process Technology unit – with a new chief executive recently named – adds a layer of execution uncertainty at a critical moment for the division.
The cleaner automation thesis that emerged from the spin-off remains intellectually compelling, and Honeywell’s dividend history attracts income-oriented institutional holders, which can limit downside. Nevertheless, a 12-to-3 technical imbalance alongside visible fundamental headwinds creates a combination that warrants caution. Investors should watch upcoming guidance updates closely for any further downward revisions to segment-level targets.
3. PPL Corporation (PPL) – 12 technical sell signals
Price: $34.38 | Daily change: -2.33%
View the full technical analysis of PPL Corporation
Pennsylvania-based regulated utility PPL Corporation matches Honeywell on 12 technical sell signals, with 4 bullish readings providing modest but insufficient counterweight. Today’s decline of more than 2% is notable for a utility, a sector normally associated with low daily volatility, and it reinforces the bearish technical picture. PPL has underperformed both the broader market and, by some measures, even the Nasdaq over the past year – a relative weakness that often draws the attention of short sellers.
The fundamental picture is mixed. Analysts have highlighted PPL’s nuclear energy exposure and infrastructure investment cycle as genuine longer-term growth drivers, and Wall Street consensus remains broadly optimistic, with many analysts retaining positive ratings on the stock. That disconnect between a bullish analyst community and weak price action is itself a technical warning sign – it may reflect that buy-side sentiment is already fully expressed in positioning, leaving fewer marginal buyers to absorb selling pressure.
Utility stocks also face the headwind of a rate environment that, while potentially easing, has kept income-seeking investors cautious about valuations in the regulated sector. For investors considering a bearish position, the relatively low absolute price and dividend support create a meaningful cost of carry, so defined-risk strategies deserve careful consideration.
4. Evergy (EVRG) – 11 technical sell signals
Price: $80.92 | Daily change: -2.69%
View the full technical analysis of Evergy
Midwest utility Evergy posts the largest single-day decline among today’s five candidates at -2.69%, accompanying 11 technical sell signals against 4 bullish ones. The stock attracted positive attention earlier in 2026 when it reported second-quarter earnings and revenues that beat consensus estimates, and management raised its retail load growth outlook on the back of signed data-centre energy service agreements. At the time, the market narrative was strongly supportive.
However, more recent analyst commentary has begun to question whether the data-centre demand story is already fully embedded in the share price. A Seeking Alpha analysis from mid-June specifically cautioned that while the incremental load from large technology customers is real, valuation metrics may have moved to reflect it entirely, removing the margin of safety for new buyers. Analyst price-target revisions since then have been described as subtle but consistently drifting lower.
The sharp sell-off today could reflect broader sector rotation out of utilities or profit-taking after the earlier rally on load-growth optimism. Either way, the combination of a premium valuation, softening price targets, and 11 bearish technical signals makes EVRG worth watching. That said, the dividend yield and regulated earnings base provide a degree of fundamental support that shorts must factor into their cost calculations.
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 is arguably the most technically emphatic entry on today’s list: 11 bearish signals and zero bullish ones. That clean sweep in the bear column is a rare reading and warrants attention in its own right. The stock has nonetheless delivered strong multi-year returns, and the fundamental picture includes genuine positives – the company recently unveiled its Raid Hunter air-defence system designed to counter drone swarms and cruise missiles, a capability area receiving significant government interest given current geopolitical dynamics.
Valuation assessments have been moving in different directions. Some discounted cash-flow analyses from mid-2026 suggest the shares may trade at a modest discount to intrinsic value, while others point to trimmed analyst price targets as evidence that expectations are cooling. The divergence in fair-value estimates – from roughly $697 down to more conservative figures – underlines the difficulty of pinning down an appropriate multiple for a defence prime whose revenue streams are heavily tied to long-cycle government contracts.
With zero bullish technical signals, momentum and trend indicators are uniformly negative at present. Defence stocks can reverse quickly on contract announcements or geopolitical developments, making timing a bearish position in this sector particularly hazardous. Disciplined risk management and position sizing are especially important here.
Disclaimer: This article is produced solely for informational and educational purposes and does not constitute investment advice, a solicitation, or a recommendation to buy or sell any security. Technical signals are backward-looking by nature and provide no guarantee of future price movement. Short selling involves the risk of unlimited losses and may not be suitable for all investors. 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 editors hold no positions in any of the securities mentioned at the time of publication.