S&P 500 hits 7,400, prompting portfolio rebalancing amid caution for a healthy market pullback.

The S&P 500 reached the long-anticipated 7,400 level, leading investors to rebalance portfolios and prepare for a possible market correction. Analyst Gary Tanashian expects any pullback to test support levels between 6,950 and 6,750, viewing it as a healthy adjustment within an ongoing bull market. Sector rotations are notable, with Tech and Growth sectors outperforming while Software and Healthcare lag due to disruptive trends like AI and GLP-1 drugs. Tanashian's strategy involves trimming overbought stocks and reallocating to sectors expected to benefit from rotation, while maintaining exposure to precious metals and global markets, which appear to have bottomed compared to the US market.