Stocks are at “critical levels,” and if we continue to break through the current levels we could be in for further selling, said Art Cashin, director of floor operations at UBS Financial Services.
“The internals of the market are heavily oversold,” Cashin warned CNBC Thursday. “It’s all about Europein my view and not about any of the small incidental indicators.”
Stocks plunged sharply across the board, with the Standard & Poor's 500 entering correction levels, diving almost 10 percent from its intraday highs in May. Wall Street continued to be fearful over the intensifying euro-zone crisis in addition to further signs of a global slowdown.
As a result, investors have been fleeing to gold as a safe-haven play, causing the precious metal to spike to all-time highs near $1,680 an ounce.
Gold’s gain "is a clear sign of international fear and that’s been directing this market,” explained Cashin. “The fact that we’re getting the heavy volume indicates that we might be getting some selling from offshore. People who can’t raise money in Europe might be trying to raise it over here.”
CNBC Data Pages:
No immediate information was available for Cashin or his firm.