QQQ broke out the top of a rising megaphone topping formation today (red on chart).
This formation requires a retrace to its base, which will put a potential head and shoulders top on the chart.
But before retracing to its base, the rising megaphone would usually complete with either a head and shoulders across the formation before the breakout downwards (green scenario), or a rising megaphone top along or across its top (purple scenario).
A retest of the formation top that bounces off it to a new high sets the purple scenario in motion.
A reentry into the formation and retest of the top that keeps the price inside sets the green scenario in motion.