Look under the sink to make sure the "weight" is connected to the looping hose at a proper position. With the spout fully in its place, the weight should hang vertically on the side of the loop that gets pulled upwards when you pull-out the faucet.

Seconding Dennis's advice to check the location of the weight. We have a new Moen with Reflex and DH was just commenting last night how much better the pull-down is than our previous faucets (Blanco and before that Kohler).

Dennis, Ruby --> Thanks for the tip! Just wanted to post back and say that this worked. Today I crawled under the sink and redid the weight.

For future reference, all Moen reflex faucets have a white tag on the side where the weight is supposed to go. The weight is installed below the white flag just before where the hose starts to curve. Works perfectly now.

Glad you were able to fix it. Just wanted to add that when my Moen Reflex faucet doesn't retract well, it's because some bottle of cleaning product or something has gotten pushed to the back of the cupboard and is impeding the action. The hanging tag, for instance, kept getting caught.