Perennial bear Marc Faber said Monday that markets have recovered from a "fully oversold" condition and a rebound in stocks was now underway, but warned that new highs in equities were unlikely.
Faber, editor of the Gloom, Boom & Doom Report, told CNBC if new highs were reached, it would a result in just a "limited number of shares making new highs."
"We had a significant correction in many shares, and as of [the] Thursday night close, the markets on a very short-term basis were extremely oversold with only 20 percent of shares above the 50 day moving average," Faber said on "Squawk Box."
"Now a rebound is underway in my opinion. But I doubt we will make new highs, and if we make new highs, maybe just with the very limited number of shares, because the technical damage is quite significant," he said.