Despite last week's stellar performance, Wall Street veteran Art Cashin expects the major averages to be tested again soon. "In my gut, I'm not sure that we're ready to be where we are quite yet ... we're in for some testing still," Cashin, UBS director of floor operations, told CNBC's " Squawk on the Street " on Monday. Last week, the major averages posted their best week since November 2020. The S & P 500 notched a 6.1% gain for the week. The Dow Jones Industrial Average ended the week 5.5% higher, and the tech-heavy Nasdaq Composite advanced 8.1%. The S & P 500 recouped nearly half of its correction losses last week as investors received highly anticipated clarity from the Federal Reserve, which raised interest rates by a quarter of a percentage point. The move marks the first increase in rates since 2018. "Amazingly, we went from heavily oversold coming in on Monday to somewhat moderately overbought going out on Friday. They had quite a good run," said Cashin. Still, Cashin said the S & P 500 is at a key level right under the 100-day moving average. If the index fails to break through that threshold, it could signal that last week was just a bear market bounce. "I think the bulls are going to have to try to maintain control, the next two days are going to be tough. It's an equinox, and an equinox is when markets change direction," Cashin added. He said the overhang for the market will continue to be political, with oil prices as a central concern.
Despite last week's stellar performance, Wall Street veteran Art Cashin expects the major averages to be tested again soon.