Our technical scanner runs daily across the S&P 500 and Nasdaq 100, measuring a broad range of indicators — from moving-average crossovers and momentum oscillators to volume trends and relative strength — to flag stocks displaying the most concentrated clusters of bearish signals. Today, 25 September 2026, five names stand out as potential short candidates, each accumulating a notable weight of technical sell signals against only a handful of bullish counterweights. Short candidates are stocks where the technical picture has deteriorated enough to suggest further downside may be possible.
Important risk warning: Short selling carries significantly elevated risks compared with buying equities. Losses on a short position are theoretically unlimited, and stocks can move sharply against a short seller on unexpected news, short squeezes, or broader market rallies. The signals below are purely technical observations and should never be treated as a recommendation to sell short. Always conduct your own due diligence and consult a qualified financial adviser before taking any short position.
1. Leidos (LDOS) – 13 technical sell signals
Price: $133.78 | Daily change: -3.88%
View the full technical analysis of Leidos
Leidos scores the joint-highest bear reading in today’s scan, with 13 sell signals against only 3 bullish counterweights — and the -3.88% single-session drop adds to the concern. The stock has been lagging the broader market over the past year, a trend noted by analysts as recently as mid-September, even as the company itself has delivered operationally solid results. Second-quarter revenue reached a record $4.56 billion, up 7% year over year, and management lifted its full-year outlook — positive fundamental developments that have nonetheless failed to translate into sustained price strength.
More recently, the company has been active on several strategic fronts: a partnership with The Modern Data Company targeting federal AI data infrastructure, and the launch of Parcata, an AI-driven threat-detection platform developed in collaboration with DHL for UK defence applications. These initiatives reinforce Leidos’s long-term positioning in defence technology and AI, but near-term catalysts appear to have already been priced in following the post-earnings bounce in late July.
Jefferies trimmed its price target on the stock in late July, signalling some caution despite maintaining a broadly constructive view. With 13 bearish technical signals now aligned and the stock underperforming peers, the chart warrants close monitoring. Bulls would point to the strong order pipeline; bears would note that price action is the ultimate arbiter.
2. Omnicom Group (OMC) – 13 technical sell signals
Price: $81.76 | Daily change: -5.03%
View the full technical analysis of Omnicom Group
Omnicom Group shares the top bear-signal count at 13, and today’s -5.03% decline is the sharpest one-day fall among our five candidates, suggesting meaningful selling pressure. The advertising giant has been navigating a mixed backdrop: while Omnicom Media reported an impressive $3.3 billion in new billings during the first half of 2026 — a genuinely strong commercial result — the stock has struggled to hold gains and recently crossed its ex-dividend date for a $0.80 per share cash dividend.
Adding to the uncertainty, leadership changes at Omnicom Advertising were announced earlier this month, contributing to a 3.5% single-session drop in early September. Management transitions at major business units can create short-term uncertainty around strategy and client retention, and the market appears to be pricing in some of that risk. The stock was already trading near the middle of its recent range heading into this week before today’s sharper move lower.
With 13 bearish technical signals and only 6 bullish ones, the balance is clearly tilted to the downside from a purely technical standpoint. That said, the new billings data and a consistent dividend provide a meaningful fundamental cushion. Investors should weigh the leadership uncertainty and technical deterioration against the company’s demonstrated commercial momentum before drawing any conclusions.
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 records the most dramatic single-day move in today’s list, falling 9.28% to $328.48 — a notable reversal given that the stock had surged more than 3% the previous session and posted a 12.7% gain just days earlier following robust fiscal fourth-quarter results. That whipsaw price behaviour is itself a caution signal, reflecting a market grappling with whether the stock’s elevated valuation is justified by its growth profile.
The valuation question has come into sharper focus following a downgrade by Bernstein to Market Perform, with analysts citing stretched multiples as the primary concern. This is not a new debate for PANW: back in February the stock fell over 10% after quarterly earnings failed to meet elevated market expectations, and the pattern of high expectations followed by sharp corrections is a recurring feature of the chart.
On the fundamental side, the AI security growth narrative remains compelling — institutional interest is high and the company continues to expand its platform. However, with 13 technical sell signals, only 3 bullish signals, and a valuation premium that leaves little room for error, the risk-reward for new buyers appears asymmetric. Short sellers should be equally cautious: violent upside reversals, as seen this week, are a reminder of the squeeze risk inherent in high-profile technology names.
4. Autodesk (ADSK) – 12 technical sell signals
Price: $241.73 | Daily change: -2.41%
View the full technical analysis of Autodesk
Autodesk enters the list with 12 bearish technical signals against just 3 bullish readings, and a -2.41% session loss that extends a difficult recent stretch. The stock reported second-quarter results that beat headline earnings expectations, yet the market’s reaction was underwhelming — shares slipped on the day of the announcement, a bearish pattern known as a sell-the-news response that often reflects positioning rather than underlying business quality.
The fundamental backdrop is arguably more nuanced. Autodesk operates in design and engineering software, a sector where cloud migration and AI-assisted workflows are still at an early stage of penetration. Renewal rates remain solid, the company recently integrated MaintainX into its platform, and management raised its full-year outlook. Some analysts have characterised the stock as a growth-at-a-reasonable-price opportunity, pointing to strong free cash flow generation and rising contract prices.
Nevertheless, from a purely technical perspective, 12 sell signals and a price that has struggled to build on its mid-year recovery represent a meaningful warning. The gap between the stock’s July price of around $209 and today’s $241 level suggests some recovery has already occurred, but the latest momentum is clearly southward. Investors already holding the stock may wish to review their stop levels, while prospective short sellers should remain alert to the genuine fundamental support beneath the surface.
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 technical sell signals and 6 bullish readings — the highest bull count among our five candidates, which tempers the bearish reading somewhat. The stock has been a persistent underperformer: over the past year it has lagged both the broader S&P 500 and the consumer defensive sector, and at one point shed approximately 21% over a rolling month, a decline noted in late 2025 commentary. Today’s modest -0.98% dip continues that trend of gradual erosion.
The company’s portfolio — anchored by the Corona and Modelo beer brands — generates reliable free cash flow, and fiscal first-quarter 2026 results showed a strong cash conversion profile. Analysts had previously placed a fair value estimate in the region of $171.50, which, if accurate, would imply the stock is trading at a significant discount to intrinsic value at current levels. That said, a discounted valuation can persist for extended periods when sentiment and momentum remain adverse, as has been the case here.
The combination of sustained sector underperformance, a downward-trending price, and a cluster of 12 bearish technical signals makes STZ worth watching for technically oriented traders. However, the relatively balanced signal ratio and the company’s defensive cash-flow characteristics mean that fundamental buyers may view any further weakness as an opportunity rather than a confirmation of structural decline. As always, the technical picture is one input among many.
Disclaimer: This blog post is produced for informational and educational purposes only and does not constitute investment advice, a solicitation, or a recommendation to buy or sell any security. Technical analysis identifies historical price patterns and does not guarantee future results. Short selling involves substantial risk, including the potential for unlimited losses. Past performance is not indicative of future performance. Always conduct your own independent research and consult a regulated financial adviser before making any investment decision. The Wall Street Stock Investors Club and its contributors may hold positions in securities mentioned.