Art Cashin: 'We're Severely Overbought'

The Dow is down Monday morning. Why the "sour note"?

Art Cashin, UBS Financial Services floor manager, offered CNBC his stock market insights.

Setting the stage was the weekend's news from Asia: "The Hong Kong/Shanghai report wasn't as glowing as it looked on top," Cashin said.

(See: Asian Rally Runs Out of Steam)

Then, Cashin says, "There's some accounting engineering going on."

"When the value of your bonds goes down, people are taking advantage of it, saying, 'well, if I wanted to buy back my debt, I can do it more cheaply than at par.' That, and the fact that we're severely overbought in the market, is probably why we're taking a respite here."

Watch the video for more of Cashin's insights on Monday's market.

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Disclosure information was not available for Cashin or his company.