Solid historical data here from @HBMStrategies
Sudden and severe 3 day drops of -4% or -5% from an all-time high on the Nasdaq-100 are rare (happened several times in the years 1997 to 1999 and again a couple times in 2020). It also is extremely bullish and leads to forward 12 months returns of near +50%.
Fast Nasdaq-100 reset from highs.
NDX dropped over 5% from ATH within 3 trading days, after strong 3M momentum and low 1M volatility.
Historically, this setup leaned bullish medium term.
Full chart below. (small sample, 4% threshold in comments)