Art Cashin: Market Is Overbought — Testing 1125-1135 Again
Stocks opened modestly lower Tuesday despite a gain in retail salesthat was better than what forecasters had expected. Stocks then rose, but weakly; so is the market rally over? Art Cashin, director of floor operations at UBS Financial Services, shared his insights.
“There’s some hesitation here,” Cashin told CNBC.
In addition, Cashin said the NFIB small business optimism indexis indicating a "tale of two economies—Main Street versus high caps."
“The other thing is, we’re at the very high end of the recent trading range," said Cashin. "Between the beginning of June and now,we’ve tested the [S&P] 1,040 area on the downside three times."
“This looks like the third test of the 1,125 to 1,135 area so the market’s a little bit ahead of itself—it’s been up 9 out of the past 10 days and on most metrics, it’s overbought.”
Scorecard—What He Said:
- Cashin's Previous Appearance on CNBC (Sept. 13, 2010)
More Market Views—Across the Board:
- Farr: Will There Be a Year-End Rally?
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No immediate information was available for Cashin or his firm.