Stocks saw a turnaround on Wednesday as the Dow jumped almost 100 points in the first half-hour of trading, following a number of volatile sessions. Art Cashin, director of floor operations at UBS Financial Services, shared his market outlook.
“We get a critical period here,” Cashin told CNBC.
“If we have a selloff late today or a heavy selloff tomorrow, there will be more work to do. Otherwise, I think we have a bought a window that may last a week or two to repair.”
Cashin noted that a market bounce usually follows a 5 to 8 percent selloff in May.
“They stopped the S&P right at 1,040, which is a number of some importance,” he said. “Now, we’re coming back up and we’re going to 1,098 and 1,092 as resistance.”
Investors should continue to watch the euro zone as events in the area are affecting the markets, said Cashin. And there’s still some fears about troop movements on the Korean peninsula, he added.
“So these two days are going to be critical,” he said.
Tracking Cashin's Comments:
- Watch His Previous Appearance on CNBC (May 24, 2010)
More Market Views from...
- Fears Overdone, Double-Dip Unlikely: Strategist
- This Correction Is 'Normal'—Strategists Still Bullish
CNBC Data Pages:
Cramer's 12 Stocks to Play the Recovery
Wednesday's Dow Gainers (as of this writing):
Bank of America
No immediate information was available for Cashin or his firm.
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