“History Rhyming? A Deja Vu Moment in QQQ’s Price Action”Parabolic Run-Up Followed by a Sharp Decline
• Both patterns exhibit a strong rally leading into a rounded top formation before experiencing a steep decline.
• This suggests a classic distribution phase followed by a downtrend.
2. Top Formation & Reversal
• In both cases, the price reaches a peak and forms a lower high structure before starting its descent.
• This indicates potential selling pressure increasing at higher levels.
3. Volume Profile
• There is increased volume near the peak and during the decline, showing distribution and panic selling.
• This reflects a shift in sentiment, from bullish enthusiasm to risk-off behavior.
4. Downtrend Acceleration
• After breaking key support levels, the downtrend accelerates, leading to rapid sell-offs in both cases.
Key Differences:
• The first pattern (older) shows a more dramatic sell-off after the top, likely due to external macro factors.
• The second pattern, while following a similar structure, has not yet fully confirmed whether the decline will match the first in magnitude or find stronger support.
Implication:
If history repeats, price may continue declining after a brief consolidation. However, external conditions (macro factors, interest rates, liquidity) will influence whether the pattern fully plays out as before.
