The stock market is not in the clear even after an enormous rally and new signs that inflation is starting to fall, according to Wall Street veteran Art Cashin. Stocks rose sharply on Thursday after a better-than-expected inflation report, with the Nasdaq Composite surging 7% and the Dow Jones Industrial Average jumping 1,200 points. Those were the biggest one-day moves for the benchmarks in more than two years. However, Cashin said on Friday's " Squawk on the Street " that the move looked like a bear market rally and that the market could make new lows from here. "I still think we probably will go back and re-test the lows. Yesterday's rally was borderline miraculous. They kept moving up. There was no retracement. There was no pause and look back. But, not to rain on the parade, you have to remember that rallies in bear markets are short, sharp and die in low volume," the UBS director of floor operations said. In addition to low volume, Cashin said he is also watching the Cboe Volatility Index , or Vix. The measure is often called Wall Street's "fear gauge" and has served as something of a contrarian indicator in 2022. "So far this year, whenever its gotten down around 20 it has been like an electric shock. And the rally that was going on when the Vix got down there ended and rolled over," he said. The Vix was trading at just under 23 on Friday. It has traded with a range of roughly 20 to 36 for most of the year. In the short term, Cashin said that he expects the market to continue to see big swings. He said the collapse of crypto firm FTX is causing a "soft contagion" that is holding back the rally. "If we could magically resolve the crypto currency thing, we could have one more try at the upside," Cashin said, adding that the rally would need to start before Nov. 15 because of a "minor cycle change" coming up on the calendar.