Our technical scanner runs daily across the S&P 500 and Nasdaq 100, measuring a broad set of momentum, trend and volume indicators to identify stocks flashing the most bearish signals. Each Friday we publish the five names carrying the heaviest concentration of sell signals – stocks that technically oriented traders may wish to examine as potential short candidates. Today’s scan is dated 4 September 2026.
Important risk warning: Short selling involves theoretically unlimited downside, requires margin and can result in losses that substantially exceed the initial position. The technical signals below are a starting point for research, not a recommendation to sell short. Always apply your own due diligence and risk management before acting on any signal.
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 sustained pressure throughout 2026, and today’s nearly 4% decline underscores the fragility of near-term sentiment around the defense contractor. The stock’s technical picture is among the weakest in the S&P 500, with 13 bearish signals against just 3 bullish ones – a ratio that suggests broad deterioration across momentum, trend-following and volume metrics.
From a news perspective, the rot set in earlier in the summer when Jefferies downgraded the stock from Buy to Hold and sharply reduced its price target, citing a deteriorating outlook. That analyst action triggered a single-session drop of more than 5%, and the stock has struggled to recover. A subsequent pullback in late September compounded matters, with the shares closing below levels seen after the Jefferies call despite management announcing fresh contract wins and a new share buyback programme.
The combination of a high-profile analyst downgrade, persistent underperformance relative to the broader S&P 500 and an inability to sustain any relief rally points to continued technical weakness. Shorts should remain mindful that defense contractors can move sharply on government contract announcements, making headline risk particularly elevated in this name.
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 joint top-ranked bearish name in today’s scan, sharing 13 sell signals with Leidos, though its steeper daily loss of more than 5% makes it particularly notable. The advertising giant’s chart has been weighed down by a post-merger narrative that is proving harder to manage than investors initially anticipated following its acquisition of IPG.
Second-quarter results released in late July told a mixed story: top-line revenue came in ahead of consensus, swelled substantially by the consolidation of IPG revenues, but profitability disappointed the market. Analysts pointed to higher interest costs stemming from the debt assumed in the merger and the subsequent refinancing, as well as integration expenses that appear to be running at a rate that concerned investors. The stock fell sharply in the session following those results.
More recently, commentary around post-merger execution risks has resurfaced, adding fresh selling pressure. While the longer-term strategic rationale for combining two of the world’s largest advertising networks may yet prove sound, the near-term technical picture reflects a market that is sceptical about the pace and cost of integration. Short sellers should note that any positive news on client wins or synergy realisation could trigger a sharp counter-trend move.
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
Palo Alto Networks is today’s most dramatic mover, shedding more than 9% in a single session and breaching its 50-day moving average in the process. What makes this technically interesting – and somewhat paradoxical – is that the selling has arrived despite the cybersecurity firm reporting quarterly results and forward guidance that Wall Street analysts broadly praised. The market’s reaction suggests that expectations had been set very high going into the print.
The stock had already come under pressure in the two sessions before the results, falling sharply as investors appeared to take profits ahead of the announcement. A pre-earnings rally of around 10% in late August had been driven by institutional positioning and enthusiasm around the company’s platformisation strategy and AI-driven security offerings. When results failed to produce the kind of upside surprise that would justify that run-up, the reversal was swift.
With 13 bearish signals and only 3 bullish ones, the technical setup is decidedly negative in the short term. However, prospective short sellers should be especially cautious here: PANW remains a high-conviction long for many institutional investors, and any improvement in broader risk appetite or a positive analyst re-rating could produce violent short-covering rallies in a name with this kind of institutional ownership profile.
4. Autodesk (ADSK) – 12 technical sell signals
Price: $241.73 | Daily change: -2.41%
View the full technical analysis of Autodesk
Autodesk enters the bearish scan with 12 sell signals against just 3 bullish ones, reflecting a chart that has been losing momentum even as the company’s fundamental story remains broadly intact. The design and engineering software maker reported second-quarter earnings that beat both revenue and profit expectations, yet the market’s reaction has been muted at best and the stock continues to drift lower.
The issue appears to be forward guidance rather than the rear-view mirror. Third-quarter profit guidance came in softer than the market was expecting, raising questions about the pace at which Autodesk can translate its shift toward subscription-based recurring revenue into sustainable margin expansion. Investors are also scrutinising the company’s cloud adoption trajectory and whether the broader construction and manufacturing software market is slowing.
From a technical standpoint, the combination of a post-earnings gap fill and weakening momentum indicators is a classical setup that bears watch closely. That said, Autodesk’s strong free cash flow generation and resilient subscription base give the bull case genuine substance, so any short position would carry meaningful risk of reversal if management provides reassurance on margin progression.
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 technical signals, and its chart reflects a prolonged period of underperformance that has attracted considerable market commentary. The beverage alcohol company, best known for its Mexican beer portfolio, has seen its shares roughly halved from their peak, a decline that has puzzled some observers given that recent earnings reports have not been uniformly negative.
The departure of Berkshire Hathaway as a shareholder was a notable sentiment blow, even though some value-focused analysts have argued that the fundamental case remains compelling at current valuation multiples. Jim Cramer’s public puzzlement over the stock’s inability to recover despite improving earnings metrics captures the disconnect between the fundamental picture and the market’s continued reluctance to re-rate the shares higher.
Technically, the stock has been unable to establish a convincing base, and the latest session decline – albeit modest at under 1% – keeps the bearish trend intact. Prospective short sellers should note, however, that consumer staples names with strong brand franchises and optically low valuations can attract value buyers quickly, and a positive development in the company’s key markets or fresh strategic news could prompt a swift reversal.
Disclaimer: This article is published by the Wall Street Stock Investors Club for informational and educational purposes only. Nothing contained herein constitutes investment advice, a solicitation to buy or sell any security, or a recommendation of any investment strategy. Technical analysis identifies historical patterns and signals; it does not guarantee future performance. Short selling carries substantial risk, including the potential for losses exceeding the amount invested. Always consult a qualified financial adviser and conduct your own research before making any investment decision. The Wall Street Stock Investors Club and its contributors may hold positions in securities mentioned.