The second piece of news was the Case-Shiller Home Price Indices, showed a huge drop in home prices at a record annual rate. While some people thought this was bad news because it showed more problems in the housing sector, I think it is beneficial. First off, we need prices to go down so that housing becomes more affordable which will then drive the housing market back up. Second, the prices were from the first quarter, which was Jan, Feb, and March. The great rally in the stock market began towards the middle of March, meaning that these house prices were before the rally started. So they are pretty far behind lagging indicators.
Both pieces of news were positive in my eyes. Lets hope it can continue this week.