As I just posted the difference between the DIA and AAPL, I'll show you the same between the DIA and QQQ which is acting a lot like AAPL this morning. It's also worth noting the market averages have come unglued from the high level of correlation that has been a hallmark of the last several months, maybe longer as the Dow-30 is up 2x the QQQ this morning.
The longer term DIA 1 min chart shows clearly the divergence getting worse in the average until it just breaks (yesterday).
Looking closer at the very same chart, just zoomed in for an intraday perspective, the DIA is apparently burning through energy or seeing price strength distributed, rather than building it, after yesterday's break and the late post on the divergences present, this is what I had hoped to see, rather than the average gathering strength.
The DIA 3 min chart looks similar to the 1 min because there were similar underlying trades taking place.
Zoom in on the same 3 min chart as above and again the DIA is not gathering energy, but burning through it. If I were looking for an average to short, I'd be considering the DIA as it has a decent price entry, less risk, lower premiums and higher probabilities as this move should fail shortly and doesn't materially change the weakness from yesterday (although it could draft off the NASDAQ 100, but that is why I mentioned the break in correlation which makes that less likely).
The QQQ does not look strong generally speaking, you can see very clearly at the break above resistance how much worse 3C became as selling in to strength was the theme.
A closer look though intraday of the QQQ 1 min shows it gathering some strength at the lows.
QQQ 3 min also is gathering some strength, the market makers and really every other pro on Wall Street can see what's happening in order flow with AAPL and I don't mean retail order flow, I suspect that is why the Q's are gathering strength, if for no other reason, the managers of the ETF have to move the Q's to reflect AAPL's weight on an AAPL move.
QQQ 5 min also gathering some strength.
Even on the 10 min we see the same.
I also want to point out that we use multiple timeframe analysis to look at different trends, the structure of underlying trade, etc. I am pointing out gathering strength in the QQQ's, but most of what we are discussing is intraday and shorter term in nature, this doesn't imply a massive new round of accumulation in the QQQ, so to be fair I'll show you the trend and try to distinguish from short term divergences and the situation with regard to the trend off the June 4th lows.
We saw numerous positive divergences probably about two weeks in advance of the June 4th low which was also a head fake move on a bearish descending triangle that traders expected to break below the triangle and make a new leg lower. We already had information before price broke below the triangle that it was almost certainly a head fake move at the June 4 th lows and that's where hedging long positions were entered in leveraged ETFs to protect core short positions. As this 4 hour chart shows, there's a positive divergence in to the June 4th low with about 2 weeks of notice before hand, the leading negative divergence now is very deep, it's much larger than the June positive divergence, so I don't want to give anyone the wrong impression about the QQQ analysis above, it is shorter term in nature, less important. The dominant trend here is very bearish, but nothing goes straight up or down and especially as volume has dried up the lat couple of years, the intraday and day to day volatility has grown exponentially, this doesn't change the fact that the market is still heading to where it is heading, it just does so in a more volatile manner, which requires multiple timeframe analysis, wider stops, better entries and exits and an understanding of what tools/trades to use at what times, otherwise it's a meat grinder for most traders.
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