By Mike Paulenoff, MPTrader.com Last week, I opined a technical piece entitled, " Momentum Divergences Flashing Warnings Signs for QQQ & FAANG Stocks," which highlighted the near- and intermediate-term divergences that were and still are developing in the big-cap technology sector. Today I follow up with a look under the hood and the technical set ups in Apple (AAPL) and Amazon (AMZN), the two largest components of the NDX-100 and QQQ. AAPL has been perched above the upper boundary line (204.50) of its February-August bullish channel for almost two weeks, which, among other things, is a sign of excellent relative strength but also could be a sign of approaching upside exhaustion. That said, as long as AAPL remains above key near-term support from 205.20 down to 204.30, let's consider its post-earnings action as a sign of excellent relative strength. From a pattern perspective, however, all of the action off of the June 25 pivot low at 180.73 into the 210.95 high on August 13 has the look of a completed up-leg. If accurate, this means we should brace for a price rollover and subsequent break of 205.20-204.30 in the upcoming hours and days that will trigger a significant correction in AAPL -- from a 12% piece of the QQQ pie. Meanwhile, let's notice on the enclosed AMZN chart that it appears to be ricocheting to the downside after about one week of bumping up against its upper boundary region of the December 2017 to August 2018 bullish price channel. Inability of AMZN to regain 1918-1920 resistance will argue increasingly that it is vulnerable to downside continuation from the upper channel region towards key initial meaningful support in the 1770-1760 area. Should such a scenario unfold, AMZN's 10.8% piece of the QQQ, too, will be in a negative technical position. And if the two largest components of the QQQ's are compromised technically, chances are the QQQ itself will be very much on the defensive.Mike Paulenoff is author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial! * I really like Mike's charts and analysis. This is shared with my readers here via MPtrader.com ** -- Some caution here again by Mike. This is why we don't use technicals alone, as the technicals don't show the background fundamentals. Apple and Amazon are doing very well business wise. Other big weight techs like Facebook took their hit and are recovering. So yes, use some caution, but don't panic just yet. -- * Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal. If you liked this article, please click the LIKE (thumbs up) button. Feel free to leave any comments, question, or opinions. Follow us and check back occasionally for additional articles or comments.