DoubleLine Capital CEO Jeffrey Gundlach said Tuesday that he sees the chance of a severe recession coming in 2024 and that the S & P 500 , possibly in anticipation, may be forming a particularly bearish technical trading pattern.
Other than the yield curve, Gundlach said leading economic indicators have been flashing contractionary signals for a long time, especially manufacturing.
Gundlach pointed out that the S & P 500 has almost returned to its record level set in January 2022, forming a "double top" price chart.
At the end of 2023, after a 24% rally, the S & P 500 was less than 1% from its all-time high of 4796.56 reached in January 2022.
Gundlach said the greenback is losing its momentum and the S & P 500 should underperform its international counterparts in the next recession.
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