Closely followed trader Art Cashin warned Wednesday that there's a chance the stock market could retest the massive lows seen earlier this month.
Stocks sold off in early February after a higher-than-expected wage number in January's jobs report sparked fears of inflation and rising interest rates. Wall Street eventually bottomed out on Feb. 8, briefly plunging into 10 percent correction territory. The market had been up for six straight sessions before Tuesday's decline.
"There's probably a 35 percent chance that we still have to retest earlier lows from a week and a half to two weeks ago," said Cashin, UBS director of floor operations at the New York Stock Exchange. Most similar pullbacks have rarely "ended in a V shape," rising straight back up after lows, he said.
"You wind up with a little bit of a W," Cashin told CNBC's "Squawk on the Street." "The market has kind of shrugged its shoulders at seasonal patterns," periodic fluctuations that occur regularly based on a particular season.
On Tuesday, Andrew Sheets, chief cross-asset strategist at Morgan Stanley, predicted the recent correction was just a prelude of what's to come later in 2018.
The Dow Jones industrial average, and Nasdaq remain on track for their biggest monthly declines since January 2016.
Earlier in the month, Cashin had predicted that the wage number in January's stronger-than-expected jobs report was unhelpful to an already worried stock market.
Cashin, 76, began his career at Thomson McKinnon in 1959. In 1964, at age 23, he became a member of the NYSE and a partner in P.R. Herzig & Co.