Our technical indicator scanner runs daily across the full S&P 500 and Nasdaq 100 universes, measuring a broad range of momentum, trend and volume signals to identify stocks showing the most pronounced bullish or bearish technical setups. For 8 September 2026, the five names below have generated the highest number of technical sell signals, making them potential short candidates for traders with an appropriate risk appetite. A short candidate is a stock where the technical evidence suggests price weakness may continue — it is emphatically not a guarantee of further declines.
Important risk warning: Short selling carries substantially greater risk than buying equities. Losses on a short position are theoretically unlimited, and stocks can rise sharply on unexpected news, short squeezes or broader market rallies. Only experienced investors with a clear understanding of these risks should consider short strategies, and appropriate position sizing and stop-loss discipline are essential.
1. Leidos (LDOS) – 13 technical sell signals
Price: $133.78 | Daily change: -3.88%
View the full technical analysis of Leidos
Leidos has had a difficult year in 2026, weighed down by lingering uncertainty surrounding its Health IT contract pipeline. Despite some commentary suggesting the stock looks inexpensive on valuation metrics, weak returns on capital have tempered enthusiasm among investors looking for improving financial momentum. The share price has swung considerably through the year, which itself reflects a lack of clear directional conviction.
More recently, the company highlighted a Navy mental health research contract worth up to $56.7 million — a contract that had already been announced in 2025, raising questions about whether management is recycling older news to support sentiment. While contract wins in the defence and government IT space remain the core driver of Leidos’s revenue outlook, the quality and freshness of its announced pipeline appear to be under scrutiny.
With 13 bear signals against just 3 bull signals on our scanner, and a single-session decline approaching 4%, the technical picture for LDOS is decidedly weak. Traders considering a short position should note that defence contractors can benefit quickly from unexpected government contract announcements, which represents a meaningful upside risk to any bearish thesis.
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 weakest performer in today’s list on a single-session basis, falling over 5% as the stock extended a recent slide that began after PepsiCo announced it was transferring its global media account — reportedly worth around $1.7 billion — to rival Publicis. Losing a client of that scale is a material setback, both financially and in terms of competitive perception within the advertising industry.
The Q2 2026 earnings report added further pressure. While revenues came in ahead of expectations, rising sharply year on year partly due to the integration of its Interpublic acquisition, profitability fell short of analyst forecasts. A significant miss on earnings per share in a quarter where revenue growth was strong points to cost pressures or integration challenges that the market is choosing to penalise.
Omnicom’s five-year total return of around 38% looks modest relative to the broader market, and with the PepsiCo account loss fresh in investors’ minds, near-term sentiment is fragile. The 13 bear signals on our scanner reflect this deteriorating technical backdrop. Bears should remain aware that the advertising sector can re-rate quickly on M&A speculation or a broader market recovery in risk appetite.
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 experiencing one of the sharpest sell-offs in today’s list, declining more than 9% and extending what analysts have described as its worst two-day drop in over two years. The trigger was the company’s fiscal fourth-quarter earnings release on 1 September, where results broadly beat expectations on revenue and free cash flow — yet the stock was punished nonetheless.
The market’s reaction appears to centre on a roughly 100-basis-point compression in gross margins, which alarmed investors who had priced the stock for near-flawless execution. When a high-multiple growth stock misses even modestly on profitability metrics, the derating can be swift and severe, as appears to be the case here. Strong free cash flow generation has been highlighted by some analysts as a mitigating factor, but it has not been sufficient to stabilise near-term sentiment.
With 13 bear signals and only 3 bull signals, PANW scores identically to the top two names on today’s list, but its daily price decline is by far the largest. Traders should exercise particular caution: cybersecurity remains a strategically important sector, and PANW commands a loyal institutional following that could generate swift buying interest on any perceived overreaction to the earnings miss.
4. Autodesk (ADSK) – 12 technical sell signals
Price: $241.73 | Daily change: -2.41%
View the full technical analysis of Autodesk
Autodesk has been under significant selling pressure over recent sessions. On 5 September, the stock fell sharply after the company’s profit outlook appeared to disappoint investors despite an otherwise respectable quarterly performance. Reports suggest the stock fell in excess of 16% in a single session earlier in the week — a dramatic move that reflects how sensitive high-valuation software names can be to any hint of margin or earnings guidance disappointment.
Earlier in the year, the company had been building positive momentum, with shares recovering from lower levels and rising ahead of earnings. The acquisition of MaintainX and the company’s ongoing transition to a subscription-based revenue model had been cited as structural positives. However, a subscription model transition can weigh on near-term reported profitability, and it appears the market is currently more focused on margin delivery than on longer-term recurring revenue dynamics.
The 12 bear signals on our scanner, against just 3 bull signals, confirm that the technical damage from the recent sell-off is substantial. Traders considering a short position on ADSK should note that software stocks in the design and engineering space can recover quickly if broader sentiment towards technology improves, or if management provides reassuring guidance updates.
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 is the most muted mover on today’s list in percentage terms, but its 12 bear signals flag a technically deteriorating situation that has been developing over several months. Since the company’s last earnings report, the stock has lost roughly 4%, underperforming the broader S&P 500 index. The alcoholic beverages sector more broadly has faced headwinds from shifting consumer habits and cost pressures, and Constellation has not been immune.
On the positive side, several analysts including those at Needham and Roth MKM have maintained buy ratings with price targets well above current levels. The company is scheduled to present at the Barclays Global Consumer Conference on 8 September, which could act as a short-term catalyst in either direction. Hedge fund positioning commentary comparing Constellation to Diageo has reflected a somewhat mixed institutional view, with sentiment appearing to have moderated compared to prior years.
The combination of 12 bear signals and 6 bull signals — the highest bull signal count of today’s five candidates — suggests the technical picture is bearish but not without some countervailing signals. Short sellers should be particularly alert to the risk of a sentiment shift following the Barclays conference presentation, as any positive management commentary on volume trends or pricing could trigger a sharp reversal in a stock that some analysts still regard as meaningfully undervalued.
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 patterns in historical price and volume data and does not guarantee future results. All investing involves risk, including the possible loss of principal. Short selling involves additional and potentially unlimited risks. Readers should conduct their own due diligence and consult a qualified financial adviser before making any investment decisions. The Wall Street Stock Investors Club and its contributors may or may not hold positions in the securities mentioned.