Our technical scanner runs daily across the full S&P 500 and Nasdaq 100 universes, weighing a broad set of momentum, trend and oscillator indicators to identify stocks showing meaningful clusters of bearish signals. On 27 August 2026, the five names below generated the highest concentration of technical sell signals, making them potential short candidates for members who use that strategy. A short candidate is simply a stock whose technical picture suggests downward price pressure may be building — it is not a recommendation to sell or short any security.
Important risk warning: Short selling carries substantially greater risk than buying equities. Losses on a short position are theoretically unlimited, margin requirements add leverage risk, and a stock can be subject to a short squeeze at any time. Always size positions carefully and use stop-loss discipline if you choose to act on any of the ideas below.
1. Charles Schwab Corporation (SCHW) – 11 technical sell signals
Price: $109.39 | Daily change: -2.57%
View the full technical analysis of Charles Schwab Corporation
Charles Schwab sits at the top of today’s bearish leaderboard with 11 sell signals against just 3 bull signals, accompanied by a notable 2.57% decline on the session. The technical picture is deteriorating even as the fundamental backdrop looks constructive on the surface: the company beat second-quarter earnings estimates comfortably in late July, posting earnings per share well ahead of the consensus, and several analysts subsequently raised their fair-value estimates.
That disconnect between improving fundamentals and weakening price action is worth monitoring carefully. One possible explanation is that a great deal of good news was already priced into SCHW after a remarkable three-year run of more than 100%. When a stock doubles and then struggles to hold gains despite positive earnings revisions, it can signal that the marginal buyer has stepped back.
The stock is also trading well below recently revised analyst fair-value targets, which could attract dip-buyers and create a volatile environment for short sellers. Members considering a short position here should be aware that any renewed positive sentiment around interest-rate-sensitive financials could trigger a sharp reversal.
2. TKO Group Holdings (TKO) – 11 technical sell signals
Price: $187.90 | Daily change: -2.85%
View the full technical analysis of TKO Group Holdings
TKO Group Holdings, the parent of the UFC and WWE franchises, matches Schwab on bear signals but carries an even more lopsided ratio, with 11 sell signals and only 1 bull signal — the weakest bullish reading in today’s entire list. The stock fell nearly 3% on the session, suggesting meaningful selling pressure rather than mere consolidation.
From a news-flow perspective, sentiment around TKO has been broadly positive for much of 2026. High-profile institutional support, a major media rights deal for UFC via Paramount, and bullish analyst reiterations from firms including J.P. Morgan have underpinned the narrative. Despite this, the technical indicators are flashing warning signs that the price may have run ahead of near-term reality.
When a stock carries strong institutional backing and bullish analyst coverage yet deteriorates technically, it often means the easy money from the initial re-rating has already been made. Short sellers should note that any positive earnings surprise or additional media rights announcement could rapidly reverse the technical damage, making position sizing and stop placement especially important here.
3. Cooper Companies (COO) – 10 technical sell signals
Price: $72.68 | Daily change: -0.49%
View the full technical analysis of Cooper Companies
Cooper Companies, the California-based medical device maker best known for its contact lens and surgical product lines, registers 10 technical sell signals against just 2 bull signals. The daily price move is relatively muted at -0.49%, but the breadth of bearish technical signals suggests underlying weakness that a single quiet session may be masking.
News flow around COO has been mixed. Valuation concerns have surfaced repeatedly this year, with commentary noting a high price-to-earnings ratio and questions about whether the stock has underperformed its healthcare sector peers. On the other hand, there has been speculation about a potential sale of its CooperSurgical division, which has attracted some buy-side interest and analyst support, including from Stifel.
The combination of an elevated valuation multiple and technical deterioration is a classic setup that short sellers watch for. However, any confirmed corporate action — such as a divestiture announcement — could produce a sharp upside gap that would be painful for short positions. The relatively low daily volatility also means premiums for options strategies may be more manageable, which some members may prefer as an alternative to outright shorting.
4. Intuit (INTU) – 10 technical sell signals
Price: $345.88 | Daily change: -3.24%
View the full technical analysis of Intuit
Intuit is the most newsworthy name on today’s list. The financial software giant reported its fourth-quarter fiscal 2026 results after Tuesday’s close, and while the headline earnings figure beat estimates — coming in well ahead of the consensus — management’s guidance for fiscal 2027 revenue came in below market expectations. The stock reportedly fell sharply in after-hours trading, and Thursday’s session price of $345.88, down 3.24%, likely reflects that after-hours reaction feeding into the regular session.
The technical read of 10 sell signals versus 3 bull signals is consistent with a stock that had already begun to weaken technically before the earnings event. Jefferies had trimmed its price target ahead of results, citing concerns about the impact of artificial intelligence on Intuit’s core tax and accounting products — a theme that management appeared to acknowledge in their forward commentary.
Earnings-driven gaps lower can sometimes mark a capitulation point rather than the start of a sustained downtrend, so potential short sellers should be cautious about chasing the move at current levels. The stock’s reaction over the next several sessions, and whether it can reclaim key moving averages, will be important signals to watch before committing to a short thesis.
5. Eli Lilly (LLY) – 10 technical sell signals
Price: $1,189.41 | Daily change: -3.59%
View the full technical analysis of Eli Lilly
Eli Lilly, one of the most widely followed large-cap names in the US equity market, rounds out today’s list with 10 technical sell signals and 3 bull signals, falling 3.59% in a difficult session. At just under $1,200 per share, it is by far the highest-priced stock in today’s list, which has important practical implications for short sellers in terms of margin requirements and borrowing costs.
The fundamental backdrop for LLY remains formidable. Its incretin franchise — anchored by Mounjaro and Zepbound in the weight-loss and diabetes categories — has delivered exceptional revenue growth, and the company continues to expand its commercial reach through partnerships such as the recently announced collaboration with CVS Health. High-profile institutional investors have been adding to positions, and pipeline momentum remains a core part of the bull case.
Against that backdrop, the cluster of technical sell signals most likely reflects near-term profit-taking and sector rotation rather than a structural breakdown. Short selling a stock with this level of fundamental support and institutional sponsorship carries considerable risk — any positive pipeline readout or earnings beat could see the stock recover quickly and sharply. Members should treat this entry with particular caution and consider whether the risk-reward genuinely justifies a short position at current levels.
Disclaimer: This article is published 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 involves significant risks, including potentially unlimited losses. 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 contributors may hold positions in securities mentioned.
