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The rally continues. The S&P 500 index will open near a four-year intraday high; the U.S. dollar index at a seven-week low; gold near 3.5 month high ; and the euro at a seven-week high vs. the dollar.
The better tone is sticking. There's little doubt about the source of this rally: Since Aug. 2, when the (explain this) met, the S&P 500 is up nearly 4 percent.
Since that meeting, Spanish 10-year yields (explain this) are at 2.5 month lows. Spanish stocks are up 10.7 percent since Aug. 2; Italy up 9.1 percent; France up 5.4 percent, Germany up 4.5 percent. Even Brazil is up 5.3 percent. (Read More: Spain Debt Costs Drop as Markets Bet on ECB Action .)
My point: The market is rallying in anticipation of big policy measures from Europe. What kind of measures?
Der Spiegel, over the weekend, said the ECB was laying plans to set yield targets on the bonds of euro zone countries. If rates went beyond the targets, the ECB would begin buying the debt.
Last night, London's Daily Telegraph said that Jorg Asmussen, the German member on the ECB board, is also endorsing the plan, despite the opposition of the Bundesbank.
How much debt might the ECB buy? Asmussen confirmed that purchases may be "unlimited."
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