Art Cashin says the market will bottom this month and this could be the unusual catalyst to cause it

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Cashin pointed to deferred tax payments due in mid-October that could put a further weight on the market.

There's more downside pressure coming for the market, according to Art Cashin, and it could come from an unusual source. "October is the month of bottoms, and usually they come after some kind of climactic sell-off. …Somewhere in October, we are going to get a bottom," the director of floor operations at UBS told CNBC's " Squawk on the Street " on Monday. Stocks were mostly lower to start October.

Payments for California citizens living in certain disaster areas that prompted IRS extensions are now due Oct. 16. This is going to be a "squeeze" on the banking system and liquidity, which could impact bonds and stocks, Cashin said. "Get ready for an adventure this month," he said. Cashin also pointed to rising Treasury yields as another source of pressure for the market. The benchmark 10-year yield on Monday hit a 2007 high of around 4.7% before pulling back.

 

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