I mentioned in my more detailed post below that if the Fed embarked on QE3 that would provide more fodder for a market rally. Another news story that would accomplish the same is if the Germans, Dutch, Fins and the ECB cave to great pressure and allow the work-around of having the ECB lend money or buy bonds of troubled countries via the IMF. That would spark a huge rally.
The ECB is prohibited in its charter from bailing out individual countries but some have said if it were to loan money to the IMF (Intl Monetary Fund) and the IMF could bail out the countries that would get around the prohibition. To me, it is a completely transparent sham but the stakes are extremely high. Remember that the IMF is comprised of many countries, not just in Europe. The US has 17% of the vote and would provide 17% of the money, though I don’t know how much is in the IMF kitty now.
The EU leaders meet 12/9/11 and there will likely be plenty more news leaks leading up to that meeting.