Art Cashin: The Short-Covering Trigger Now

Stock markets were mildly positive Monday as an upgrade on credit-card issuers and news from Boeing counterbalanced qualms of a rate increase — qualms which had dampened jobs-report euphoria on Friday.

What's next? Art Cashin, director of floor operations at UBS Financial Services, told CNBC what traders are watching now.

"There are some signs that the market is getting tired," Cashin said.

"But we're really at a very critical technical juncture here. And they're taking their lead from the dollar."

Specifically, traders are watching the DXY (US Dollar Index), a gauge of a basket of currencies, he said.

"The DXY is at 75 right now. If the dollar punches through this level, it could inspire short covering," Cashin declared.

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Disclosure information was not available for Cashin or his company.