Fund managers remain "paralyzed" as they wait for the European Central Bank's important policy-making meeting Thursday, veteran trader Art Cashin told CNBC on Monday.
Market watchers expect the ECB to announce an aggressive stimulus package to reinvigorate the European economy, and Cashin said the central bank may even implement negative interest rates.
The first trading session of the month usually has "bias to the upside" as new money flows into the market, Cashin said, but the looming policy meeting made Monday seem different.
"A lot of fund managers may be paralyzed waiting for the ECB on Thursday," said Cashin, UBS' director of floor operations at NYSE. "So today it's kind of a walk through the motions."
The S&P 500 and Dow Jones Industrial Average each reached new highs Monday, bouncing back from session lows after the ISM made a pair of errors and had to correct May manufacturing data twice before 1 p.m. Speaking about the first correction before ISM released its third and final reading, Cashin said the revised data changed the "contour" of the market.
—By CNBC's Jeff Morganteen