Watch Art Cashin: Traders may be buying the dip

Cashin says stocks bounce on 'buy the dippers'
Cashin says stocks bounce on 'buy the dippers'

Art Cashin of UBS Financial Services said markets got a bounce partly due to oversold conditions.

Major indexes are higher across the board with the and Nasdaq looking to snap three-day losing streaks after global growth concerns and geopolitical tensions have soured markets the past several sessions.

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"You had a bit of an opening bounce," Cashin said. "That rolled over and then the bulls found salvation on the cocktail napkins because we stopped at the 50-day moving average on the S&P: 1,978."

Cashin cautioned there are concerns about how markets will hold up the rest of the week. This week has a downside reputation: There's an old tradition to sell on Rosh Hashanah and wait until Yom Kippur to buy.

Wednesday's rally may be due to the buy-the-dip crowd, which waits for major averages to fall several percentage points before getting back into the market. (Think: Buy low, sell high.) The Dow Jones Industrial Average, for instance, is on track for its best day five weeks.

"Thursday and Friday will be very interesting," Cashin noted. "If [stocks] roll over and go south again, then people may take a slightly more cautious look. But if they continue on the upside, everybody is going to say: It happened again. A 2 or 3 percent drop, and you had to buy the dip."