Tuesday morning started off on a bearish note, which intensified after the latest news release from the S&P/Case-Shiller home price index. The index reported that home prices dropped 0.2% during August, which brought an end to four straight months of gains.

The Case-Shiller home price index was termed "disappointing" by those compiling the data. In 15 of the 20 metropolitan areas tracked by the index, home prices dropped compared to July. In addition, the data showed that annualized price growth slowed to 1.7% from July's 3.2%. The only cities that showed an increase in home prices were Chicago, Detroit, Las Vegas, New York and Washington D.C.

During June, home prices increased for the third-straight month, lending a bit of momentum to the bulls Tuesday morning. The problem is that the downward tide of the market was too much for this news to overcome, but taking this news in conjunction with other news could put a positive spin on the day.

The Standard & Poor's/Case-Shiller home price index posted a 1% increase in June compared to May. Comparing the number to a year ago, the index increased 4.2%. On a quarter-over-quarter basis, the second-quarter numbers were 4.8% better than the first quarter. Of the 20 cities surveyed, 17 saw monthly price increases -- Las Vegas was the only city where prices fell.

According to Standard & Poor's Case-Shiller home price index, prices for single-family homes in 20 major cities increased a seasonally unadjusted 1.3% in May.

According to the report, prices have increased 4.6% during the past year. Compared to April, prices increased in 19 of the 20 metro areas that the index tracks. The last month's increase was the second-straight following six monthly declines.

According to the Standard & Poor's/Case-Shiller home price index, home prices in the 20 cities surveyed saw an increase for the first time in seven months. The 0.8% gain was driven by the government tax credits, which have since expired.

Therein lies the problem: the gains were propelled by government incentives, and said incentives have gone by the wayside. Will we see the gains come back to the pack since the government has stopped spending to make us spend? You can bet on it.

Home prices fell yet again in November, losing 0.2% month-over-month (on a not seasonally adjusted basis), following a 0.1% drop in October. The Standard & Poor's/Case-Shiller's home price index reported only five out of 20 metro areas with gains, and from November 2008 to November 2009, home prices are off 5.3%. Need a benchmark? It's late 2003: Six years of appreciation have been obliterated by the financial crisis.

The slide worries analysts who wonder if the housing recovery is strong enough to keep moving forward. A stall on the housing side, of course, could push through the rest of the economy, ultimately putting the squeeze on consumer spending (further) and impeding overall growth.

October seems to have been a good month for consumer spending. Unemployment is holding consumers back, but it isn't keeping wallets clamped shut.

A Bloomberg survey reveals that purchases grew 0.5% last month, based on the thoughts of 61 economists. The U.S. Department of Commerce is releasing its report on Wednesday. In advance of this news, Bloomberg's survey suggests that there are signs of slight improvement.

U.S. market futures were fractionally higher in pre-market trading this morning, with the S&P 500 and Nasdaq contracts trading about one point above fair value.

President Barack Obama is set to renominate Federal Reserve Chairman Ben Bernanke to another term, and will announce his decision this morning. Fed watchers believe continuity in that office will help markets remain calm, as more questions are raised about the Fed's ability to withdraw its numerous programs aimed at restarting the economy before inflation becomes a problem.

The market also awaits data on Consumer Confidence and the Case-Shiller Home Price Index, both of which will be released later this morning.

James Cullen edits and writes at CollegeAnalysts.com.