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. The Dow Jones Industrial Average lost more than 200 points through midday trading, while the S & P 500 traded down 0.4%. Those declines come after Wall Street wrapped up a tough month last week. The S & P 500 had its worst monthly drop of the year in September, and the Dow posted its biggest one-month drop since February. Cashin pointed to billions of tax payments which were earlier deferred in several states by the Internal Revenue Service due to storm and weather-related damage, that could put further pressure on the market. 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 affect 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. The 10-year note will put pressure on equities if it moves toward that level again and will give individuals a "sigh of relief" if it stays around 4.6%, he said. Yields rose Monday as investors sold off safe haven treasuries following news of the short-term agreement that staved off a government shutdown . Aside from the deferred tax payments and yields, Cashin pointed to student loan repayments beginning this month and individuals' pandemic-relief money starting to dry up, which is taking out money from the banking system.
