TA Tip (4) How Gap Up Open Can Kill Us

This is interesting topic on bear mkt rallies, why gap up open can mess up traders mind and cause big loss. Let's see, today (11/25) ES (SPX future) traveled in a range of 874 and 833.50.

Ok, let's assume:

If tomorrow SPX gap up and we open at 874? Dare to chase?
A gap up now is very hard to play because every 10 points we have either a fib number or a trendline:

Here is a typical trader will do:
(1) Oh, gap up upen, not chase, wait, (then spx goes 880)
(2) Oh, no, maybe missed boat, but wait (then spx goes 890)
(3) Now a typical trader mind mostly will changed and wants to short, so everyone entered to short 890-900.
(4) Then we get a short sqeeze, hit 920, we all loss.
(5) after we get sqeezed out, traders tend to chase long, oh, maybe it is for real, then spx starts its route to retest 880.

This is typical how we loss in bear mkt rally gap up open.

So for tomorrow, I just prefer we do not have a gap up open any more, we have 2 already. Both gaps filled partial before move up. who knows if next gap will follow the same plan. Bear mkt rally gap ups is just hard to play.