Reflex Rally - Right on Cue

The Bounce As this is being written midday on Tuesday, the expected reflex rally has booked 166 pts of the expected 200-300 pts rebound in the DJZ4. The DJ traded to 9697, inside the specified support area of 9620-9720 after tagging an overnight low of 9683. The US bonds, notes and dollar reversed as well. The US dollar traded down to 8473 and 75 on Monday and Tuesday, within 20 ticks of the intra-year low set in Jan and Feb 04.

To maintain the reversals, the DJZ4 needs a close above at least 9875 with 9900 preferable. The US dollar must recover 8620 on a closing basis with the FVZ4, TYZ4 and USZ4 closing below 111'04, 113'16 and 113'24 respectively.