TOM LEE: Here are 4 reasons to 'stay bullish'

Amidst the market volatility, that may or may not be over, some high profile analysts have been sending out warnings on the markets, saying that a bear market is on the way.

Fundstrat's Tom Lee is not one of those analysts.

In a huge 22-page note to clients on Friday, Lee outlined 4 reasons to think that the good times may not have come to an end yet. We summarize here:

1. End of the dollar headwind: "The 'typhoon' dollar headwinds in 1H15 are fading and futures suggest a tailwind in 1H16 (slide 5)-aiding Industrials and Technology stocks. After being a 19%-20% headwind in 1H15, dollar gains Y/Y in 3Q are on track to be a less drastic (but still severe) 10% and based on implied futures prices gain around 5% y/y in 4Q15 and then turn into a tailwind (-3% in 1Q16). The reversal of these dynamics will naturally benefit U.S. multinationals and be particularly helpful to Technology and Industrials."
2. Oil prices have hit bottom: "Second, oil may be finally ready to generate sustainable gains, boosting Energy and allaying general disinflation concerns. Over the past 30 years, oil has managed to rally after a 2-std dev plunge, with gains posted 3, 6, and 12-mo later (87% avg 12m)-in other words, oil price action is so bad, that even under negative supply/demand dynamics, oil may be ready to rally."
3. The housing market is still strong: "Third, U.S. housing remains a bright spot, with positive dynamics in demand (household formation of 1.6mm) coupled with not enough supply (starts too low at 1.2mm). Each new single family home creates $280k in economic activity-hence, a move towards 1.8-2.0mm starts would add $200b in annual sales for housing."
4. We're still way behind the last 2 bull markets: "Fourth, the current EPS cycle has seen profits rise 29% above the prior peak-still well below the 61% (2007 vs 2000) and 275% (2000 vs 1981) cycles. In other words, we believe the ability of U.S. corporates to generate additional earnings growth is substantial, driven by a recovery in U.S. investment spending."

Lee does say that there is a possible danger that could pull the market down.

"The biggest risk to our thesis is a fundamental after-shock from the market turmoil," he wrote. "That is, an investment bank, hedge fund or even a country experiences a severe enough shock to generate significant loss."

There is some data to back up Lee's claims, as housing market data has been strong and oil prices staged a rally Thursday.

Lee maintained his projection for the S&P to hit 2325.