The stock rally turned tepid Monday as earnings news receded and traders lost their initial enthusiasm over strong new-home sales.
Art Cashin, director of floor operation at UBS Financial Services, offered CNBC his stock-market insights.
Last week's rally was indeed concrete, Cashin said.
"The 2-week run was particularly impressive. You've got a Dow Theory buy signal; the market broke out to a higher high; it changed some of the charts."
But he added a sobering note: "We are heavily overbought now ...We may see a correction this week."
Cashin based his projection on "looking at the number of stocks above their 10-, 20- and 30-day moving averages."
How bad and how long?
"I think it'll be a mild correction...ending about August 2 to the 5th."
Then, Cashin said, markets will most likely enjoy a "very impressive but head-fake rally — until the fall." Then stocks will take "another leg down."
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Disclosure information was not available for Cashin or his company.