Three Things to Watch in this Week's Market:

Many traders were shocked this morning to find out that MF Global filed for Chapter 11. There were rumors that IBKR could possibly step in, but apparently that fell through and so did all hope for MF. In addition to this news, we have rate announcements coming out of Australia this evening at 11:30 pm et, the FOMC rate announcement this Wednesday for the US, the European Central Bank Announcement on Thursday and the US and CAD Employment numbers Friday morning. That much news means that we should expect significant levels of volatility throughout the week as the announcements occur.

We saw the Japanese Government step in and sell the Yen last night. After hitting new highs against the USD, the Bank of Japan (BOJ) decided to intervene... again. As an exporting economy, higher Yen prices hurt Japanese exporters which is what prompts the BOJ to intervene. We tend to have a rule not to fight central banks as their intervention causes extreme volatility which makes it very difficult to trade throughout the wild swings that occur. With all the news due out this week there are plenty of other markets to look for opportunities. Some currency ETF's to keep an eye on are: FXA, FXB, FXC, FXE, FXF and FXY.

The ES Futures took out the major resistance area of 1256 (yearly open) last week which led to a rally up above the 1280 area. We are currently seeing the market come back and test that 1256 level that was resistance but is now considered strong support. Other numbers to keep an eye on this week as important support and resistance areas include: 1282, 1275, 1272, 1269, 1262, 1256, 1245, 1233-1230. We also point out the next resistance level we are watching in Gold in our Daily Report Video Below: