After Thursday's strong 30-year Treasury auction, Friday saw reports of rising consumer confidence. What does this mean for the stock market?
Art Cashin, UBS Financial Services director of floor operations, offered CNBC his insights.
"I think the market's back to looking at its own internals. It gets hypochondriacal," Cashin said. He believes Thursday had the potential for lots of "buy signals" — but instead, traders got a "non-confirmation."
For example, "Transports moved above where the signal would go — and then pulled back and closed below it. The S&P stalled right in the resistance band, at 953 to 958. The high was 956."
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His conclusion: "We're building...a stall formation. A lot of people are beginning to wonder if the rally's finally beginning to run out of steam."
"Today and maybe the next five days will tell us that very clearly."
Factors giving Cashin pause:
"Oil is right up against its 52-week moving average, about $73. The dollar is also at a critical area."
What's coming next week?
"The market's going to take its pulse, take its temperature, and say 'oh my God, I feel lousy, I'm gonna lie down.'"
"Next week ought to be a lulu," Cashin warned.
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Disclosures:
Disclosure information was not available for Cashin or his company.