Spiking out the low of a parabolic rally is a very common occurrence in this type of pattern. It's a big panic point when all gains have been lost even if in very early to the rally. Often we see ultimate lows in these areas (Commonly off slow ranges) and even with things going much lower we see aggressive bounces.
Here's an example.
This is the same concept used for the ARKK forecast.
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This bounce sucked.
Might be a great catch up trade if we head into overall strong sustained markets but was a total non starters.
Hard to believe it bounced so little after taking out the full parabolic leg.
Would not bode well for it if it broke lows again IMO.