Art Cashin: 800 S&P Level is Next 'Critical Test'

Art Cashin, floor manager for UBS Financial Services, offered CNBC his take on what traders expect Monday.

Cashin weighed in the Oracle deal with Sun Microsystems (which had rejected IBM's offer as too low:

"I wouldn't call this a great deal of M&A activity — they [business leaders] still can't find the jar where the pencils are."

But the green-shoot signs of mergers and acquisitions are here, Cashin added:

"I think it's just beginning. The smart CEOs are going to do that. We're looking at Microsoft and others who are sitting on big piles of cash."

For more Cashin insights on the S&P, watch the video above.