Stocks appeared headed toward a pivotal capitulation point but haven't gotten there yet, indicating that a market turnaround has not yet arrived, Art Cashin, director of floor operations for UBS, said on CNBC.
Cashin said he had hoped last week's foray into bear territory for the stock market had indicated a bottom. But futures trading before the market Monday indicated at most a benign dropoff for stocks, which to Cashin showed Wall Street has not seen the worst.
"We were getting close to what could into capitulation (where) we might see a bottom just days away," he said. "They're not quite as weak this morning as I hoped. I thought today could be a purge day--we'd get it all out."
Capitulation refers to a bottoming of the market where stocks get so oversold that investors are ready to get back in.
Merrill Lynch recently called a capitulation for bank stocks, but most analysts believe the broader market isn't there.
Cashin said he is hoping the market gets there, and thought when the Dow hit a 20 percent drop off its October high Friday--the benchmark for a bear market-- things had gotten where they needed to be for the market to rally.
"We'd get your 20 percent (Monday), we'd get a volume reversal tomorrow," he said, "and maybe spend a little summertime at the beach."