Art Cashin: Stock Market Facing 'Significant Pullback'

Art Cashin, UBS Financial Services director of floor operations, offered CNBC his take on what traders are watching Thursday — and his predictions for the stock market in coming days.

Art Cashin's Trader's Edge
Art Cashin's Trader's Edge   

After bouts of strong trading yesterday (Wednesday), what happened in the final hour to lower the market?

"As I said to you a couple of days ago, I think there's nervousness back in the market. The next several days will tell us whether it's going to be a significant pullback or just a cleanup of the overbought condition."

Cashin's own take? "I'm leaning toward a significant pullback."

As to the financial stocks, Cashin warned that the stress test could be a "ticking time bomb":

"If it's a real 'stress test,' we could be back where we were in the pre-Lehman days," he said, with big banks dichotomized into survivors and those which look healthy — but suddenly collapse.

Thursday - CNBC's Companies in the News:

Wells Fargo

Bank of America

General Motors

General Electric