Technically, we could still use some consolidation here but there are not too many reasons to be bearish here from a longer-term time frame - a few, but not many. One thing that I would worry about is that both gold and silver had some downside follow-through today to yesterday's reversal, going against the overall market in that regard. I would not want to see further selling in the precious metals over the next few days - dip buyers need to come back soon.
Chart from Telechart, Courtesy of Worden Brothers, Inc.
My only other worry I would have is China. I talked about China this weekend and some of the stocks that might be worth watching if Shanghai bounces at all anytime soon. After (in most cases) moving nicely on Monday, many of the names on my watchlist have acted poorly the past few days - names like CCME, HTHT, XUE, and MY. I would be careful about any China names right now simply because this seems to be one of the few areas of the market where buyers aren't coming in very strongly.
I don't have much else to say here - the markets remain strong overall and although there are a few things to watch carefully, most signs put to a market that wants to continue higher. Until we see some heavier volume selling that breaks the short-term moving averages, the long side is the correct side of this market. Take care and good luck Thursday.