Investors have several areas to watch as the week comes to a close, but any signs of inflation have been notably absent from markets, Art Cashin, director of floor operations at UBS Financial Services, said on CNBC.
"Everyone is looking for what the reaction is after yesterday's selloff," Cashin said on "Squawk on the Street" on Friday. Retail investors are "probably better served waiting to see the action between 10 o'clock and noon."
(More Cashin: 'Very little money to be made' in this market)
Markets are also watching the events in Cairo closely, something Cashin described as "more than a backdrop" to how markets will behave Friday and in coming weeks. It's "primarily the [Suez] Canal and what it may do to global transit and shipping" if turmoil spills over to this economically sensitive area.
Thursday's market was marked by a number of conflicting cues that are driving equities, Cashin said. "A lot of people were trying to make it a connected trade. ... If you step back and think about what happened, you had the dollar drop sharply ... you had basically almost all commodities go up … yet there's no sign of inflation anywhere around."
(More Cashin: 'Desperate search to put money to work')
Cashin also said that numbers from retailers such as Wal-Mart are giving investors something to worry about as questions remain about the health and spending patterns of the U.S. consumer.
Friday, Cashin suggests that investors keep one eye on the yield of the 10-year Treasury and the other eye on developing events in Egypt.
(Read more: Egyptian army defiant as protests begin)