Great question. I did recently highlight that XLY put in a divergent high & then broke down below the minor uptrend line on the daily chart about a week ago, thereby giving it a bearish intermediate-term outlook.

The bullish developments that I noted on AMZN in the recent video was the 60-min bullish falling wedge & impulsive breakout the other day. As of now, the 60m chart of AMZN still looks constructive (more upside likely unless the Q’s take another leg down) & your logic regarding the other 3/4th’s weighting of XLK (all other stocks besides AMZN) seems valid although I’d really have to take a look at the charts of the next 10 or so top components of XLY to be able to say that with any degree of confidence. I’ll try to do that asap & get back to you or cover it in a video.

QQQ 60-min PPO signal line is below the zero line but you’ll notice a purple line around -0.49 on my QQQ 60-minute charts which I’ve pointed out in the past as the level which quite often delineates the bullish & bearish trends & also acts as support/resistance, just as the zero line often does. The safe bet is to see the signal line (9-ema) cross down below that level, especially if the current bullish divergences are taken out. Until then, a case for a rally can still be made with that trend indicator still bullish & the positive divergences still intact.