Blue line is where we are now. Red line is when the recession hits.

The Sahm rule signals the start of a recession when the three-month moving average of the national unemployment rate (U3) rises by 0.50 percentage points or more relative to the prior 12 month low.

The Sahm rule stands at 0.37% today and has been in an uptrend since January. Once we breach 0.5% it indicates the economy is actively in recession. Not there yet but inching closer each month.

Keep an eye on unemployment. If it starts accelerating upward then the economy is in for a rough time.