Taking advantage of Barcelona's surprise defeat at home to Valencia on Saturday, Atletico moved three points clear at the summit with a 4-0 mauling of sixth-placed Real Sociedad on Sunday.
David Villa, Diego Costa, Joao Miranda and Diego were the men on the scoresheet as Atletico found themselves leading the standings for the first time since winning the double in 1996.
Prior to the match there was a tribute to club legend Aragones, Spain's Euro 2008-winning coach who died on Saturday at the age of 75, and Simeone believes the former manager would have been looking down on the team on Sunday - and liking what he saw.
"I'm sure that he will be up there, dressed in red and white, feeling very happy with the courage the team showed. He himself was always a very courageous man with a lot of character," Simeone said of Aragones, who led Atletico to the 1977 Spanish title as well as three Copa del Reys during four different spells in charge of the club.
Aragones also made more than 350 appearances as a player with Atletico between 1964 and 1974, winning three league titles.
Simeone added: "When someone like Luis leaves us, you feel pain and sadness but I was really touched by the people today, and also how the crowd remained silent right up until the eighth minute, then chanted his name.
"It was wonderful that the minute's silence was observed in all of the stadiums through Spain."
Atletico midfielder Mario Suarez also dedicated the victory to Aragones as the capital club continued their stunning form this season which has now seen them win 28 of their 37 matches in all competitions, while losing just the once.
That has left them on course for honours on three fronts, with the team also through to the semi-finals of the Copa del Rey and last 16 of the Champions League, where they will play Real Madrid and AC Milan respectively.
Suarez said on his club's website: "Everything went well, we won, we're leaders.
"I'm very happy with everything and I dedicate this victory to Luis. Everything we get this year will be for him because he is an Atletico and Spanish football legend."