Watch Art Cashin: Why stocks may reach new highs

Cashin says: 'Sopped up a little' hot money

Art Cashin said the benchmark gained strength as it moved above near-term resistance this morning and could be heading for a new high if it breaks through the next technical barrier.

Cashin, UBS' director of floor operations at the NYSE, told CNBC's Mary Thompson around midday, "They're very close to the next resistance level, which is 1882 to 1885. If they break through that there's a very good chance they will try to get above the record closing high, which was 1890."

If that happens, "the bulls will be reinvigorated and maybe we'll take a shot at 1900."

—By CNBC's Alex Crippen. Follow him on Twitter @alexcrippen.