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Watch Art Cashin: What you really need to monitor

Veteran trader Art Cashin told CNBC on Wednesday that it's not news headlines driving the market action. It's cold, hard numbers, he said.

Far too often, Cashin said, market observers and the media point to headlines and events that appear to rattle markets. He cited Tuesday's comments from Philadelphia Federal Reserve President Charles Plosser and New York Fed President William Dudley, which many attributed as causes behind Tuesday's deep selloff.

It was technical levels of support and resistance that drove Tuesday's selling, Cashin said.

"People have a habit of looking to see what do you think caused that and then they scan the news ticker to find the first negative thing, and say that must be it," said Cashin, the director of floor operations at the NYSE for UBS. "Even though the times are completely out of whack."

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As markets bounced back Wednesday with triple-digit gains in the Dow, Cashin said the S&P 500 would face resistance between 1,888 and 1,891 points. Echoing his own comments from Tuesday, Cashin also told investors to watch a key support level of 4,099 in the Nasdaq Composite.

—By CNBC's Jeff Morganteen.