Wall Street rebounded from its weakest session of 2010 with a mildly positive start on Wednesday. What should investors be watching for in the markets? Art Cashin, director of floor operations for UBS Financial Services, offered his insights to CNBC.
“The floor is trying to figure out whether yesterday's [pullback] had any significance at all,” Cashin told CNBC.
“There is something called a 'VIX sell signal' which appears to have kicked in, but there’s debate among technicians as to the efficacy of it.”
Cashin said he will continue to watch the sell signal numbers and how the market reacts. (The "VIX sell signal" is a theory that when the volatility index sinks below a certain level, it may be a sign of market complacency and portend a possible sell-off).
- Where's the VIX Now?
“The other concern is the Washington hearings and will they continue to take that tone of victims and villains and feed into class warfare,” he said.
“I’m worried about that building up as we get closer to the November election, and by second quarter if jobs don’t come back and they keep feeding these flames, we could have trouble out on the streets," he said.
"There’s constant pushing toward borderline demagoguery and it’s no good for the country.”
Meanwhile, Cashin said he is also watching out for Thursday’s weekly jobless claims data as it is important for the markets.
“It’s all about employment and it’s all about whether that change in payrolls was significant,” he said. “There’s a lot of debate on the employment front and how bad it may be.”
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No immediate information was available fro Cashin or his firm.