That may have investors worrying about Thursday's jobs numbers, which could possibly impact the 10-year yield and the discussion about when the Federal Reserve moves to raise interest rates.
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"Caution is in the air and that's why we're not moving any further," he said.
"I really think it's hysterical we're all sitting around talking about a market that is worried that prosperity might break out."
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Stocks closed mixed Wednesday, with the Dow and the S&P ending slightly higher.
That said, Cashin, director of floor operations at the NYSE for UBS, thinks there is always potential for some kind of a market melt-up like Jeremy Siegel predicted earlier in the day on "Halftime Report." The renowned Wharton School professor told the show he thinks the Dow could possibly go to 20,000.
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"There is a lot of money on the side. People are not getting a return. They're desperate looking to get some return," Cashin said. "You could get a move that surprises everybody."
—By CNBC's Michelle Fox