Art Cashin: '30% Chance of Sudden Reversal'

Amid choppy earnings, is the rally running out of steam?

Art Cashin, director of floor operations at UBS Financial Services, offered CNBC his stock-market insights Wednesday.

Caterpillar on Tuesday had reported a sweet upside surprise of 50 cents per share — yet its shares are down. Why?

Cashin said that among some traders, "there is a concern" about the global construction giant's numbers being misleading.

"The Caterpillar results weren't quite the unalloyed joy they appeared to be. I think the company is a little stretched."

He said the firm was buoyed by Chinese stimulus money — and so faces an uncertain future.

Crunching such ostensibly false hope with the uncertainty of bank earnings, Cashin maintains his stance on the current rally: "We'll know by the end of this week" whether there will be a minor pullback or a hard correction.

"I'd say there was a 30 percent chance of a sudden reversal."

What do the "super-rally," Bill Gross, "head-and-shoulders" formation and Pres. Harry S Truman have in common? Cashin talks them up in the full interview.

More from Art Cashin:

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Disclosure information was not available for Cashin or his company.