Another positive housing report is getting a better reaction than the previous releases of the last few days as Stocks stage an impressive turnaround. S&P futures are now up 6 points on the day and are only a few points shy of yesterday’s yearly high. Eur/Usd meanwhile hasn’t been quite so impressed only bouncing as far a 1.4235 so far.

Its worth remembering though that there is a tax credit for certain first time buyers of $8000 which expires on 30th November which like the cash for clunkers programme, is artificially stimulating the market. Lets see what these economies do without the Government handouts.