Happy first weekend of spring everyone. Yeah, spring technically started on Tuesday, but for those of us who are glued to the markets all the time, it doesn't do us any good until the weekend. And, it looks like it's going to be great weekend weather for most of you. Add sunny skies to some great college basketball over the next couple of days, and there's a lot to be stoked about. The weekend isn't quite officially here though, and we've got some market-related business to take care of as well as quick note for you regarding our newest Featured Stock, Premier Alliance Group. First things first though. What's Impossible? I know it may be a little anti-climactic to tell you the point I'm going to make before I lay down my supporting evidence, but I think it's important for you to know exactly where I'm going with this as you read, you know? So, here it is: Despite this week's struggle, the market still hasn't actually given us any indication it's ready to pull back. I talked to you on Wednesday about the 3x3 displaced moving average (or DMA), though I've actually been using this tool with you guys and gals for a long time. Either way, it's an important and predictive indicator that's helped my make good trading decisions that I may not have made otherwise. As an example, look how well the 3x3 line (blue) has acted as a floor for the NASDAQ 100 (NDX) since late last year. It's not even considered to be an organic support and resistance floor the way a normal moving average line is, yet it's still managed to act as a floor - the floor - for nearly three months now, rekindling the rally every time it stumbled. The only exception would be the plunge from early March, which ended up being a non-issue as the market began to rebound the next day and has been going guns-a-blazin' ever since. Even today's temporary dip from the NDX has been wiped away, with the index fighting its way back above the 3x3 line at 2727.9. Anyway, what I really wanted to talk to you about was how these displaced moving averages [I also like the 25x5 DMA] were so helpful, and why what we're NOT seeing with them yet is a clue that the bullish run may not be over yet. Most folks can generally spot a major trend reversal once it's underway. If you really want to make money with reversals though, you have to be able to spot them as they materialize. Otherwise, you're late to the party. What most traders usually don't seem to embrace, however, is that most reversals actually begin with a lot of volatility, indecision, and waffling. A displaced moving average can highlight those times. Without getting too deep into the technicalities of it, an ideal reversal would begin with an index bobbing up and down around a DMA line for a bit. There's also a follow-through requirement, but you get the idea....trade-worthy tops and bottoms tend to be volatile. The pullback from January of 2010 is almost a textbook-perfect example. The market had been rolling along quite nicely headed into the new year, but things got a little squirrelly by the middle of January - the NDX moved above and below its 3x3 DMA line several times over the span of just a few days. All that gyration around the short-term displaced moving average should have been a red flag, and the bearish confirmation should have been logged on January 21st when we closed at a new low. Yet, most traders were still bullish, thinking the overall uptrend was still intact. Big mistake. Though the signs were there, most people just didn't see the 7.4% correction coming. Great, but what's that got to do with you today? We're not seeing that same kind of volatility or waffling. So, as uncomfortably overbought as the market may feel right now, the reality is we don't have any real signs of the bulls being done with the buying effort. Now, I never say never, and no tool is perfect - we may well be at the onset of a pullback even without any clear signs of one. In my trading life though, I know I've made a lot more money by responding to what the market is doing, and a lot less money by trading what I think the market should be doing. A while back I set a mental target of 2784 for the NDX, and did so at a point in time when a lot of people though there was no way stocks could ever continue to rally. Well, they did. They're up 3.3% since then, and showing no real signs of stopping. Critics or not, since the call's been working out so far, I'm going to stick with the outlook until it's clear I have no reason to. The saga will continue on Monday. Now, about this Premier news.... PIMO is Primo Wow. We knew Premier Alliance Group (PIMO) was going to be a hit, but we had no idea it was going to be this popular. We saw 180,000 shares trade hands yesterday, with most of it being prompted by the bulls. The stock's hanging in there pretty impressively today too. Looks like folks want to hang onto it. Anyway, no need to repeat the Premier Alliance story to you. We can sum it up by saying it's one of the few small caps out there that's (1) already generating revenue, (2) is consistently EBITDA positive, is (3) usually profitable on a net basis, and (4) is on the verge of huge growth. Those are the kinds of things usually reserved for blue chip-caliber names. I will point you towards some of the new data and commentary on Premier Alliance Group though. The hub is right here, which is the starting point for everyone, especially if you'd like to pen your own comments on the company. The official SCN research report is right here, which gives you the whole nine yards. The printable PDF version of the report is here. James Brumley posted a great overview and outlook here, Jonathan Yates made some key points about PIMO here, and Bryan Murphy took a technical look at yesterday's action here. All that being said, here's what I think you're going to find the most helpful with your review of Premier Alliance... the webcast from last week. I checked it out, and it was a great overview along with some details you're not getting anywhere else.