Our technical scanner runs daily across the S&P 500 and Nasdaq 100, measuring a broad range of momentum, trend and oscillator indicators to identify stocks showing the most pronounced bullish or bearish setups. Today, 28 August 2026, we turn our attention to the bearish side of the ledger — stocks where multiple technical indicators are aligned to the downside and which may warrant attention as potential short candidates.
Important risk warning: Short selling is a high-risk strategy. Unlike buying a stock, where losses are capped at the amount invested, short positions carry theoretically unlimited downside if a stock rises sharply. Margin calls, short squeezes and unexpected positive catalysts can all result in significant losses. The signals below are purely technical observations and should never be acted upon without thorough independent research and careful risk management.
1. Essex Property Trust (ESS) – 16 technical sell signals
Price: $280.76 | Daily change: -2.57%
View the full technical analysis of Essex Property Trust
Essex Property Trust, a West Coast-focused residential REIT, leads today’s bearish scan with 16 sell signals against just 5 bull signals. The stock is off sharply on the day and has broadly underperformed the wider market over the past year, a trend noted by several analyst commentators as recently as late August 2026.
From a fundamental standpoint, the picture is mixed. Analyst fair value estimates have been nudged only marginally, hovering around the $278–$279 range, which places the current price in territory that some coverage considers roughly fairly valued rather than attractively discounted. A Truist price target upgrade earlier in the year provided a brief tailwind, but the stock has struggled to sustain upward momentum since.
The combination of persistent market underperformance, a tight consensus around fair value and a technically deteriorating chart makes ESS one of the more compelling setups on the bearish scan today. Investors considering any short position should remain mindful that REITs can be sensitive to shifts in interest rate expectations, which can reverse technical trends quickly and sharply.
2. VICI Properties (VICI) – 16 technical sell signals
Price: $25.77 | Daily change: -0.88%
View the full technical analysis of VICI Properties
VICI Properties ties Essex at the top of the bearish leaderboard with 16 sell signals. The gaming and experiential real estate landlord has slipped over the past year and, despite recent institutional buying reported around its Q2 2026 update, the technical picture remains firmly negative. The stock is trading in the mid-$25 range, a level that some analysts regard as below fair value — yet weak earnings momentum has kept buyers cautious.
The Q2 2026 results showed revenue broadly in line with expectations, but the accompanying earnings commentary pointed to continued softness that has not inspired a re-rating. A widely discussed potential Caesars buyout scenario could introduce meaningful corporate event risk, including possible property divestitures that would alter the portfolio’s composition and income profile.
While VICI’s 6%-plus dividend yield and long-term triple-net lease structure offer fundamental support, these attributes have not been sufficient to arrest the technical deterioration. Short sellers should weigh the real possibility that the elevated yield itself attracts income-focused buyers who could absorb selling pressure at these levels.
3. Invitation Homes (INVH) – 15 technical sell signals
Price: $29.23 | Daily change: -2.21%
View the full technical analysis of Invitation Homes
Invitation Homes, the large-scale single-family rental REIT, appears third on our bearish scan with 15 sell signals. The stock has declined materially from levels seen a year ago, and despite a solid Q2 2026 report in which funds from operations came in ahead of consensus estimates, the share price has continued to drift lower — a classically bearish signal that good news is failing to produce upward price action.
The analyst community remains predominantly cautious. Both Morgan Stanley and Mizuho maintained Hold ratings in recent weeks, with price targets of $33 and $31 respectively — implying modest upside from current levels but reflecting little conviction for a near-term re-rating. A $500 million senior notes offering announced in late June added to balance sheet leverage, which some investors may view as a headwind in a higher-rate environment.
Wells Fargo’s upgrade to Overweight in late June is a notable counter-signal that short sellers must not dismiss. A single influential upgrade can attract institutional buying that rapidly unwinds a technically bearish setup, particularly in a liquid, widely-followed name like INVH.
4. Dollar Tree (DLTR) – 13 technical sell signals
Price: $127.00 | Daily change: -3.92%
View the full technical analysis of Dollar Tree
Dollar Tree is today’s sharpest decliner among our five candidates, shedding nearly 4% on the day. The move follows a second-quarter earnings report that actually beat analyst estimates on both sales and earnings per share — yet the market reaction was negative, with investors focusing instead on weaker-than-expected guidance elements. This kind of sell-the-news reaction after a headline beat is a technically significant warning sign.
Comparable store sales growth of 3.7% and a 7% revenue increase to just under $5 billion were broadly encouraging, and management cited positive customer traffic trends along with some tariff-related tailwinds. However, the market’s willingness to mark the stock down sharply despite those positives suggests that expectations had already risen beyond what the results could fully satisfy.
The 13 sell signals in today’s scanner, combined with the severe price reaction on earnings day, paint a cautionary technical picture. That said, discount retailers can exhibit sharp recoveries when consumer sentiment shifts or when competitive dynamics improve, so any short thesis here carries meaningful event risk around future trading updates.
5. Brown-Forman (BF-B) – 12 technical sell signals
Price: $27.28 | Daily change: -2.81%
View the full technical analysis of Brown-Forman
Brown-Forman, the Louisville-based spirits group behind Jack Daniel’s, rounds out the list with 12 sell signals and only 4 bull signals — the weakest bull reading across all five candidates. The stock has been under sustained pressure for several months, with a series of analyst downgrades adding fundamental weight to the technical deterioration. Both Citigroup and BNP Paribas Exane moved to negative ratings in late 2025 and early 2026 respectively, citing valuation and structural demand concerns.
Valuation analysis using discounted cash flow and price-to-earnings metrics has produced mixed signals, but the broad conclusion from multiple sources is that the stock does not offer a compelling discount relative to its earnings trajectory. The spirits sector more broadly has faced headwinds from shifting consumer preferences and ongoing tariff-related uncertainty around international trade flows, both of which weigh on a globally exposed brand portfolio like Brown-Forman’s.
A partnership announced earlier in 2026 with Pabst Brewing added an interesting diversification angle, though it has not been sufficient to reverse the prevailing negative sentiment. As with all short candidates, the combination of a depressed price and multiple bearish analyst views also means that any positive surprise — operational or macroeconomic — could trigger a swift short-covering rally.
Disclaimer: This article is published for informational and educational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Technical analysis identifies patterns in historical price data and cannot predict future price movements with certainty. Short selling involves substantial risks, including theoretically unlimited losses, and is not 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 contributors may hold positions in securities mentioned in this article.