Art Cashin: Stock Market Facing 'Significant Pullback'

Art Cashin, UBS Financial Services director of floor operations, offered CNBC his take on what traders are watching Thursday — and his predictions for the stock market in coming days.

After bouts of strong trading yesterday (Wednesday), what happened in the final hour to lower the market?

"As I said to you a couple of days ago, I think there's nervousness back in the market. The next several days will tell us whether it's going to be a significant pullback or just a cleanup of the overbought condition."

Cashin's own take? "I'm leaning toward a significant pullback."

As to the financial stocks, Cashin warned that the stress test could be a "ticking time bomb":

"If it's a real 'stress test,' we could be back where we were in the pre-Lehman days," he said, with big banks dichotomized into survivors and those which look healthy — but suddenly collapse.

Thursday - CNBC's Companies in the News:

Wells Fargo

Bank of America

General Motors

General Electric