Art Cashin: Markets Are 'Not Going Back to 2007'

Pimco's CEO Mohamed El-Erian warned that slower global growth is "the new normal." What about the shorter term? Art Cashin, UBS Financial Services director of floor operations, gave CNBC his insights for this week — and the long horizon.

"We've been technically overbought for a while," said Cashin, quoting John Murphy's widely-watched "technical service" note:

"[Murphy] predicted that the rally would be about two months long, because the sell-off from January had been that kind of [indicative] move," Cashin said.

"This week I think will be critical to see if we're just going to have a mild correction or something a bit more serious."

What clues is he looking for? "If they [stocks] continue to rally, up another 5 percent or so, I think we could be setting up for a real whipsaw move to the downside."

Turning to El-Erian's "new normal" comment, Cashin cautioned investors, "We're not going back to 2007."

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Disclosure information was not available for Cashin or his company.