It’s not that there is any inverse relationship between these two. Consumer confidence index increased to 55.9 in January from a revised 53.6 in December. Economists had expected a reading of 54 for January. On the other hand, U.S. home prices fell in November. Home price indexes showed prices in 10 major metropolitan areas fell 4.5% in November from a year earlier, while the index for 20 major metropolitan areas dropped 5.3% on the year.

Few days ago, Commerce Department reported that existing-home sales plunged in December after three straight months of increases lifted by a government tax credit. Last week, the department said new home construction fell far more than expected in December.

Even though there is a good news about consumer confidence, Dow closed down 2 points after moving up more than 80 points for the day. This week is a tough week to trade because of so many events taking place. Interest-rate decision is coming up from the Federal Reserve on Wednesday. There is a speculation about whether Fed Chairman Ben Bernanke would be reconfirmed or not. Traders are also waiting for State of the Union Address by President Obama. If President talks about more laws to restrict banks’ abuse of the financial system, you will see more financial stocks going down.

Keep an eye on the market, but don’t get obsessed with it if you are not a day-trader.