Art Cashin: S&P 'Flirting' With Key Support Level

The stock market rallied as much as 400 points after last week's massive selloff, but will it be able to maintain those gains?

Art Cashin, director of floor operations at UBS Financial Services, shared his insights.

"So far the bulls have gained a little ground for themselves," Cashin told CNBC.

"The rally didn't fade immediately after the opening, [and] it held on after the European markets closed—those are two good signs that all traders look for," he said.

There is still room for caution, though, as the S&P 500 is "flirting" around 1,145 and 1,150—the support level it broke on Thursday when the "trap door" opened, he said.

Cashin said he suspects Thursday's selloff came from an error related to carry trades on the Japanese yen. He cited the 270 trades cancelled by the Nasdaq, saying 198 of them were related to exchanged-traded funds. Because the New York Stock Exchange doesn't trade ETFs, it likely wasn't the root of the selloff, he said.

"I think there's a lot of finger-pointing without thinking about what's going on," he said.

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Disclosure information was not available for Cashin or his company.