Need help with simple Board design

I am making my very first eagle project and I have a very simple (perhaps silly) question. The design is essentially a whole bunch of LEDs and decoupling smd caps. I have placed LEDs and caps on both the top and bottom layers. When I move a cap (that is on the top layer) on top of another cap that is on the bottom layer I get a yellow cross on the pads of the cap. I’m new to Eagle so I don’t know if doing this is allowed. I thought this should be allowed since the caps are not on the same layer so even though they overlap there shouldn’t be any issues. Am I right? What am I doing wrong? What does the yellow cross means?

Thank you for any help.

http://i.imgur.com/1Ka7fGX.jpg

Shows the yellow crosses when I move C17 to overlap with the cap on the bottom layer

http://i.imgur.com/W4c1yxM.jpg

It’s telling you that the bottom and top layers aren’t connected.