Could the ECB decision actually be GOOD for markets?

Economy doesn't need zero rates anymore: Pro

While some feel that the European Central Bank failed to meet market expectations on strengthening quantitative easing Thursday, one analyst said this could actually be good for the markets.

"I'm really not disappointed with what the ECB did today, what they kind of left off on the table in terms of extending the amount per month and the rate cut," said JPMorgan strategist, Samantha Azzarello. "They extended the tool kit by reinvesting principal and by saying they are widening the scope of what they are going to purchase, which I do think is a positive in the longer run."

Azzarello told CNBC's "Squawk on the Street" Thursday that the rally we've seen in European equities was "fully on the back" of heightened expectations about today's announcement from ECB president, . However, Azzarello added that from a macro perspective, Europe could be in a good place.

Michelle Meyer, deputy head of US economics at Bank of America Merrill Lynch said while there's a lot that could move the markets through the end of this week, U.S. Fed chair Janet Yellen will remain focused on what's going on in Europe.

"I think Yellen is carefully listening to what Draghi has to say and she's looking at the exchange rate movements," Meyer said Thursday. "I think she has to take a little bit of a longer term perspective though and say, 'Is it the case the ECB is setting policy that's appropriate for the economy?' In that respect, I think the jury is still out."

What could tip the scale for Yellen and the Fed in the U.S. is if the market fulfills certain expectations, said Meyer.

"In order to continue to increase interest rates and get to a higher long-term rate, they do need to see some momentum built in the economy," she said. "They have to be confident that the cycle has room to expand."

Europe slumps 3% at close after ECB disappoints on QE

If the Fed does feel confident and ultimately decides to move in December, Azzarello thinks the market could see a rally through the end of the year.

"It's partially a confidence factor, this move back to normalization," she said. "We see it as a positive. Especially since there is still a lot of global easing around the world that's going to support risk assets."

To critics who think a December rate hike might upset the market, Azzarello said the market doesn't necessarily need protection.

"I think of zero percent rates as being an emergency measure. The economy is not in need of emergency measures anymore, even if we are to some extent puttering along at, let's say, 2 percent."