Top Five Reasons to Be Really Bullish

5.) Pending Home Resales Fall More Than Expected
4.) Former Hedge Fund Greats Getting Clocks Cleaned
3.) Citi and Wells May Loan Less Money to Preserve Capital
2.) Last Large SIV Facing Blowout By September If It Can't Refinance
1.) Student Loan Insurer Files For Bankruptcy Roiling FMD Investors

In summary, the pace of home sales is still shrinking, banks are restricting lending, investors who used to make money are getting housed (consider this a pun if you'd like), and students are about to find it even harder to borrow money. In defense of the market, it is actually down on the day, so maybe for once, it is interpreting bad news as bad news.