Monday was the worst day for stocks in about two months. Art Cashin, director of floor operations at UBS offered his insights Tuesday.
In his Tuesday note to investors, Cashin said that the S&P was not able to hold on to its 200 day moving average or its 50 day moving average. That's a key point for Cashin.
"It moves the momentum to the bears. We're a little oversold after Monday's action," said Cashin on CNBC. "The next two days are going to be critical."
With seven days left in first half of the year, Cashin said the recent sell off is more than profit taking.
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"It looked more like panic," Cashin said. "It looked the kind of deleveraging that we saw around the time that Lehman was struggling to stay alive. If you remember, commodities, oil was down. All asset classes were down at that time."
For investors, Cashin said those waiting on the sidelines as well as those in the markets now have more to think about during the pull back.
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"The market will probably go [down] about 15 percent just to fool everybody. You get in about the 10 percent level and people say 'oh my god the market's going down', so you need about 15 percent down to make everyone feel bad," said Cashin.
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Disclosure information was not available for Cashin or his company.