As I scanned the charts this morning, I noticed an interesting development in the tech space. Apple (AAPL) is attempting to break out while large cap tech is still struggling to breakout above its downtrend resistance line. For large cap tech, I’m referencing the PowerShares QQQ Trust (QQQ) or the NASDAQ 100 (both charts look identical).
I’ve included a chart below for visual effect. Can Apple pull the Power QQQs higher? Or is this a divergence that could lead to some selling?
It’s a great short-term question for traders. And the best thing we can do is monitor the relationship. If large cap tech stocks (QQQ) perk up and follow Apple’s lead, then we’ll see a broad based break out in tech stocks. However, if the QQQ fails here again, it could trigger some additional selling and perhaps elicit a false start in Apple’s stock.
Please note that this is an intraday chart. The 104 level looks like an important PowerShares QQQ resistance level to watch.
Apple (AAPL) vs PowerShares QQQ Trust (QQQ) – Daily Chart
For more thoughts on Apple’s stock, read my recent post on Apple’s consolidation and what to look for. Â Thanks for reading.
Follow Andy on Twitter: Â @andrewnyquist
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
