Art Cashin: Watch This S&P Resistance Level

Stocks opened higher on Monday as investors looked past weakness in the US jobs picture and kept a mild August rally in gear. Art Cashin, director of floor operations at UBS Financial Services shared his market outlook.

“We can continue [the rally] through today, but we may get restrained somewhat by wondering about what’s going to happen at the FOMC tomorrow,” Cashin told CNBC Monday.

On Tuesday, the Federal Open Market Committee meets to discuss monetary policy. While policy makers are widely expected to hold rates steady, traders will be watching for whether the Fed will resume buying mortgages and Treasurys.

Meanwhile, Cashin advised investors to watch the 1,131 to 1,135 level on the S&P 500.

“That’s a bit of a resistance and maybe a litmus test,” he said. “We get through there, there’s an air pocket up through 1,150.”

Scorecard—What He Said:

  • Cashin's Previous Appearance on CNBC (Aug. 6, 2010)

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No immediate information was available for Cashin or his firm.