"Better to remain silent and be thought a fool than to speak out and remove all doubt"
Past rallies have been built on the hope that the ECB might wake up and realize that they are the only possible buyers for European peripheral debt. After recent speeches it is difficult to fathom this occurring as they have displayed how utterly clueless they are. It will likely take a worsening of the situation in order for them to act.
I believe the market is set up to rally into year end but the ECB is making it a challenge. It is difficult to buy without even the hope that the situation in Europe could get better. That said, I still believe we will get a rally starting some time this week.