There's a "perfect recipe" for for continued upside in stocks, even as the broad S&P 500 hit a fresh record high on Monday, according to Nick Colas, Co-Founder of DataTrek Research.

Here are the ingredients:

  • 10-year yield below 3%
  • continued earnings growth
  • potential for diminishing trade headwinds

Investors were also pleased with Federal Reserve Jerome Powell's speech on Friday at Jackson Hole, which calmed fears of a faster than expected pace of rate hikes.