Art Cashin: Beware Oil's Key Resistance Level
The Dow keeps experiencing minor pullbacks. As the quarter ends, is the big correction finally coming?
Art Cashin, director of floor operations at UBS, offered CNBC his stock-market outlook.
"Until we break out of the current trading range, it looks like we'll continue" trading relatively sideways, Cashin said.
What about the upcoming earnings season?
"The bar for earnings for this quarter is low as a limbo bar — so they ought to be able to meet those."
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But Cashin warned that those seeking market direction clues in earnings may be disappointed: "We'll stick with the 'no visibility' conditions."
One commodity indicator worries Cashin:
"With oil pressing up against key resistance here — if it gets above $74, $75, you could get a short-covering spike. That could really hurt the recovery that's beginning."
He cautioned trigger-happy investors not to jump the gun:
"Remember, the second mouse gets the cheese."
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Disclosure information was not available for Cashin or his company.