Market Preview: Brussels Calling

Stark argued that ultimately Germany's stance of providing only so much relief and demanding its weaker neighbors pay their fair share will prove untenable.

"Admittedly, Germany has reluctantly contributed significant amounts to the European Stability Mechanism but not without some promises for fiscal reforms by the receiving nation," she wrote. "German officials have noted that the issuance of Eurobonds to address the debt crises would encourage less-disciplined countries to continue their spending spree. In other words, Germany is less willing to offer a hand to its other Euro members without a commitment by the receiver to make more sacrifices. No charity cases for them. Unfortunately, Germany will have to choose between bailing out less deserving (in their opinion) European nations or a collapse of the Euro."

Sam Stovall, chief equity strategist at S&P Capital IQ, isn't expecting Europe's leaders to pull a rabbit out of their collective hat but he noted that stocks look set up for a healthy upside spike if the results of the summit do surprise the cynics with a shift toward compromise.

"It appears to us that many investors remain cynically skeptical toward the possibility that a hint of compromise, let alone a game-changing agreement, will emerge from the upcoming EU summit," he wrote in commentary released after Wednesday's close. "If investors successfully avoided a 19th disappointment by getting the unexpected, it might result in a 'compromise catapult' of global equity prices. We still believe there will be a less-than-substantive conclusion from the gathering."

Stovall also weighed in on the another big event expected on Thursday, a ruling from the Supreme Court on President Obama's health care mandate.

"We think the lifting of uncertainty, combined with end-of-quarter window dressing, may offer a boost to a sector that has already held up better than many had expected," he said.

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