house prices might tell us where we are headed

they've only fallen 2%
If they were to fall further people may have to curtail spending to firm up their balance sheets

this could have a big impact on and lead to another leg down on the stock market

check out what cadence capital says
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http://www.asx.com.au/asxpdf/20090115/pdf/31fl712mh2j4dt.pdf

so if you are looking for direction keep an eye on house prices