Can good housing news overpower the breakdown of this bearish pattern?

News came out this morning that Housing starts topped estimates (Housing starts here)    Is this news already built into prices? Can this good news overpower the pattern below?

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The DJ Home Construction index declined almost 90% from 2005 to 2008, leading the broad market lower.  Since its 2008 lows it has reflected a ton of relative strength when comparing it to the S&P 500.
The rally off the 2008 lows created a bearish rising wedge, which suggests a decline in prices two-thirds of the time. The index may have double topped at its 38% retracement level at (1) in the chart above. The index has broken support of this bearish rising wedge recently which must be respected.
The rise in this index and housing in general has been of great benefit to the economy and broad markets over the past few years and the news is positive this morning at well.  Are we looking at buy the rumor sell the fact?  Can today’s good housing news over power the pattern that has been created?
Personally I believe the Power of the Pattern, which is a collective picture created by the worlds investors/traders (not me) is the news to pay the most attention too!!!
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