Jeffrey Gundlach, Wall Street's bond king and respected prognosticator on all financial markets, is painting a bearish picture of the stock and corporate bond markets, as well as the U.S. economy.

In a webcast Tuesday, he cited weak chart patterns, a rising deficit, signs of an economic slowdown and the Federal Reserve's shrinking balance sheet.

"It certainly looks like the U.S. [stock market] is going to break down to me and to a lower level," the founder and chief executive officer of DoubleLine said. He said stocks look headed back to their lows in February and could break below them.

Gundlach used charts to tell his bearish story, showing a chart of chip stocks going back to 2000 and how they were unable to stay above their highs made during the dot-com bubble.

He did the same with financials, showing bank stocks have failed to break out after rising close to highs last seen just before the financial crisis.

Gundlach noted that banks won't perform even if rates are rising if the yield curve is flattening. And he noted that higher rates have hurt loan growth, which will in turn hurt financial profits. "It's difficult when demand for your product is dropping," he said.

The investor also took note of the recent drop in the "FAANG" stocks (Facebook, Amazon, Apple, Netflix, Google-parent Alphabet).