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We're in for a June swoon after jobs shock, Wall Street bull says

Buy the dip: Thomas Lee
Buy the dip: Thomas Lee

A surprisingly dismal May jobs report this week shocked the market, and may yet sweep the prospect of a June rate hike back under the rug.

However, one of Wall street's biggest bull told CNBC that despite a delay from the Federal Reserve, a June swoon is very much still on the table.

"We're not talking a 5 to 10 percent correction, but we think you're better off buying the dip," Tom Lee, managing partner at Fundstrat Global Advisors told the "Fast Money" traders this week.

According to Lee, a confluence of events make a market 'pause' much more likely. These building financial and market forces include stocks posting three straight months of gains; high-yield spreads setting up to widen; the reversing course, and disappointing economic data that all point to a less liquid environment for equities, he said.

"Things that have been tailwinds are not necessarily supportive in June," said Lee. "We've met with a lot of clients and the ones who've made money through May are booking profits."

Cleveland Federal Reserve President Loretta Mester
Fed's Mester says gradual rate hikes still appropriate after jobs report

While Lee does expect equities to see a pullback, he remains bullish in the longer term. He recommends buying those lows with the expectation of a breakout even higher. Lee's S&P 500 year-end target remains at 2325, 11 percent above current levels.

Despite many economists' belief that the Federal Reserve will push a rate hike to later in the year, the thought of tighter monetary policy shocking stocks into a bear market is not on his radar.

Lee says that when you take a closer look at a composite average of the S&P 500's performance during all of the Fed's hike cycles, the market inevitably begins to rally once again.