Each week our technical scanner sweeps the S&P 500 and Nasdaq 100, counting the balance of bullish and bearish signals thrown up by a broad range of indicators — momentum oscillators, moving-average crossovers, volume trends and more. Stocks where bearish signals significantly outnumber bullish ones are flagged as potential short candidates: names where the technical picture suggests the path of least resistance may be lower. Today, 13 October 2026, five stocks stand out from the crowd.
Important risk warning: Short selling is inherently more risky than buying shares. Losses on a short position are theoretically unlimited, margin requirements can change at short notice, and a stock can be subject to a short squeeze at any time. The signals below are for informational purposes only and should never be acted upon without your own thorough due diligence and, where appropriate, advice from a qualified financial professional.
1. Leidos (LDOS) – 13 technical sell signals
Price: $133.78 | Daily change: -3.88%
View the full technical analysis of Leidos
Leidos is enduring a prolonged period of selling pressure, with the stock having shed roughly 37% from its recent highs. The technical scanner records the maximum bear score of 13 signals against just 3 bullish ones, suggesting broad-based deterioration across momentum, trend and volume indicators simultaneously — a relatively rare alignment that warrants attention.
On the fundamental side, the headwinds appear meaningful. J.P. Morgan recently downgraded the stock to Neutral and cut its 2027 EBITDA margin forecast materially, citing significant compression in the health segment. Jefferies had already moved to Hold earlier in the year. Multiple analysts now sit on the sidelines, and the commentary around budget exposure adds a further layer of uncertainty for a business that derives a substantial portion of its revenues from government contracts.
The closure of the security screening joint venture and a new board appointment have done little to arrest the slide. While some commentators argue the valuation looks undemanding at around 11 times forward earnings, the persistent margin concerns and lack of near-term catalysts mean the technical weakness may have further to run before a durable floor is established.
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 registers the joint-highest bear score in today’s scan, with 13 bearish technical signals versus 6 bullish ones. A daily decline of more than 5% underscores the severity of the current selling, and the breadth of bearish signals — spanning trend, momentum and breadth indicators — points to a stock under sustained distribution rather than a simple one-day flush.
The advertising and marketing services giant has attracted a string of awards recently, including a haul of honours at the MM+M Awards through its health division and recognition at the IPA. Operationally, second-quarter adjusted earnings per share showed growth, and the pending integration of IPG continues to generate optimism in some quarters. Goldman Sachs was noted as favourably disposed toward the stock even as the price drifted lower.
Yet the technical deterioration tells a different story. Despite a forward earnings multiple that some analysts describe as deeply discounted and a dividend yield above 4%, price action has been consistently weak. When fundamentally cheap stocks continue to fall on heavy volume, it often reflects concerns — around organic revenue trends or integration execution risk — that the market has yet to fully price in. Prospective short sellers should note that the dividend creates a carrying cost on any short position.
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 the most dramatic mover in today’s list, dropping more than 9% in a single session to reach $328.48. The scanner awards the stock 13 bearish signals against only 3 bullish ones — a striking technical deterioration for a name that, just days earlier, was trading above $410 and generating considerable bullish commentary around its AI-driven security platform.
The speed of the reversal is notable. As recently as 10 October, technical analysis pieces were discussing breakout attempts and resistance levels above $414, and Wells Fargo raised its price target to $525 only days ago. A director share sale filed with the SEC around the same period added a modest note of caution. The gap between analyst optimism and what the market is now doing with the stock is wide, and that divergence itself is a warning sign worth taking seriously.
Cybersecurity remains a structurally attractive sector, and the long-term bull case for Palo Alto — centred on platformisation, AI-enhanced threat detection and expanding SOC partnerships — has not disappeared overnight. However, when a high-multiple growth stock falls sharply on broad technical signals rather than a specific negative catalyst, it can indicate that institutional positioning is being unwound. Shorting a volatile, heavily covered name of this kind carries considerable risk of sharp reversals.
4. Autodesk (ADSK) – 12 technical sell signals
Price: $241.73 | Daily change: -2.41%
View the full technical analysis of Autodesk
Autodesk enters the short-candidate list with 12 bearish technical signals and only 3 bullish ones. The stock has been in a significant downtrend, having lost around 23% from its late-August peak, and today’s further decline of 2.41% to $241.73 suggests the selling has not yet exhausted itself. Moving-average configurations, momentum readings and volume patterns are all leaning negative in the current scan.
The fundamental backdrop is mixed. Full-year earnings guidance issued in August disappointed relative to analyst expectations, triggering an initial sharp sell-off. Since then the company has made a notable leadership change in its Architecture, Engineering and Construction division, installing a long-serving executive with a brief to accelerate AI and cloud adoption. Some analysts view the stock as attractively valued relative to its history and its positioning as an asset-light software business with AI tailwinds.
However, in a week when technology stocks broadly came under pressure — partly attributed to renewed geopolitical tensions — Autodesk has been unable to sustain even modest relief rallies for long. Commentators noting that the stock appears cheap on a forward earnings basis may ultimately prove correct, but technical analysis suggests the market has not yet found a comfortable equilibrium. As always, a value case alone is insufficient justification for timing an entry or a short.
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 against 6 bullish ones. The daily move is the most modest of the five names at just under 1%, but the breadth of the technical deterioration — reflected in a score that matches Autodesk — suggests an underlying trend that goes beyond short-term noise. The stock has been grinding lower for some time, and the scanner’s signals reinforce that picture.
Fundamentally, the company delivered second-quarter results that beat both revenue and earnings-per-share estimates, which on the surface appears encouraging. However, the market’s reaction was muted at best, because management’s guidance pointed to a slight organic sales decline for the fiscal year and the beer segment — long the company’s engine of growth — continues to face softening demand. When a company beats on the numbers but guides cautiously, the guidance tends to dominate price action.
Constellation also projected only marginal organic sales growth over the medium term, a significant step-down from the trajectory investors had become accustomed to. The combination of decelerating beer volumes, a subdued outlook and weak price momentum makes for a challenging environment. Bears will point to the guidance disappointment as confirmation of a structural slowdown; bulls will note the valuation and the company’s strong brand portfolio. The technical signals currently favour the former view.
Disclaimer: This article is produced solely for informational and educational purposes and does not constitute investment advice, a solicitation or a recommendation to buy or sell any security. Past technical patterns are not a guarantee of future price behaviour. Short selling involves significant risks, including potentially unlimited losses. Always conduct your own research and consult a qualified financial adviser before making any investment decision. The Wall Street Stock Investors Club and its contributors may or may not hold positions in the securities mentioned.