Wouldn't be prudent to expect any monetary moves from the Fed at this point - minutes which would hold greater weight come out later. I'd look at other numbers such as housing starts (also coming out on Wed), export #s, unemployment figures etc to provide the fireworks as far as the U.S. is concerned.
Presently, what we're witnessing is the much anticipated rally in the U.S. dollar (Dubai crisis contributing to it), extension of the TARP program, headlines like higher inflation/lower than anticipated IIP spooking the market, impending CRR hike taking a toll on banks lately, knowledge that good news is out on GDP - next one will incorporate the drought, an iffy situation with invisibles (inward remittances) on BOP - thanks to Dubai again and exports & credit growth not picking up yet.
Once the CRR hike news is digested (way before the actual hike happens), banks should start to move up - almost essential for a true market rally. Further down, any positive surprise in credit growth (beyond the expected 20-22% due to low base effect) & negative surprise on inflation - let's not forget - the new basket may do the trick, resumption of the inevitable downward move on USD, salary hikes/Insurance monies moving into the markets should all be positives for the markets to move higher. After the Commonwealth should be time to re-evaluate.
Caveat - these are thoughts of an optimist
Kumar