The current rally is "still somewhat suspect," Art Cashin, UBS Financial Financial Services director of floor operations told CNBC Friday morning.
"I was looking for a bit of a correction here, this one is more like a rolling top and is developing a kind of umbrella like canopy," Cashin said.
"What would be almost perfect would be to pull back to somewhere between 750 and 780 and then hold there and start to rally again and that would give a great deal of courage to everyone,'' Cashin said when asked about a possible pullback in the markets.
When asked about comments from Berkshire Hathaway's Warren Buffett that the economy is 'no longer an economic Pearl Harbor, but the war isn't over,' Cashin said "I think it was somewhat helpful for the markets."
Cashin also commented on a statement by Paul Volcker, chairman of the newly formed Economic Recovery Advisory Board under President Barack Obama, that the worst is over for the economy.
"That was the huge spike the day before when that leaked out around 1pm," Cashin said.
"The key things he said that the economy didn't need any more stimulus."
In Cashin's written comments released Friday, he noted that Thursday afternoon's market fall maybe have been based on an "anti-Wall Street feeling" after President Obama announced the Chrysler bankruptcy.
"People worried if that was the tone of what the president said more than about the bankruptcy," Cashing said on CNBC. "And that helped kill the rally."
Cashin joked about wearing the surgical mask on the trading floor saying, " I don't know if this is going to help me with my health, but my doctor said it would like me look better on TV."