Rob Koyfman, founder of Koyfin Charts, wrote a lengthy forecast on Monday making the case for a continued bull market based on the “reflation” efforts of the Fed.
“The most powerful part of technical analysis is that it removes your emotions from the equation and helps you understand what the market is saying. Technical analysis separates what SHOULD happen based on fundamental projections from what IS happening. Currently, the market is loudly saying the Fed Bazooka worked to turn the tide, and risk assets are going higher,” argued Koyfman. “When the Fed is effectively reflating the economy, the most cyclical assets in the market break their downtrend and start forming uptrends.”
He urged caution, however, noting that while “the bullish view outlined above is currently supported by technical analysis, it can change with the circumstances.”
“As many investors and CEOs have said, this environment is like nothing we’ve ever seen.”
Read the full article here: The Money Printer Goes Brrrr And The Bull Case Grows Stronger