The S&P 500 is up more than 30 points and is challenging some levels we highlighted earlier. The Nasdaq is up 2.4% in the largest rally since January 2013.

The main story in the forex market continues to be the disconnect with stocks. USD/JPY has retraced about 35% of its losses over the past three weeks while the stock market has recovered nearly 60%. Even Treasury yields have reclaimed about 45% of losses.

Late in the day, the US dollar is finally getting some traction. The move started with cable falling to a session low and now gains are being spread right across the board with AUD and NZD nearing lows.

The next shoes to drop could be EUR/USD and USD/JPY as both trade within 10 pips of the extremes of European trading.