Tech Pullback Explained: Where Smart Money Rotates Next

• Market breadth is healthy, but big tech and crypto are experiencing a pullback, leading to rotation into late-cycle bull market leaders.
• Expect modest overall market gains (1-5%) this year, with a focus on individual stock performance rather than broad index rallies.
• Key economic reports (CPI, jobs) this week could influence Fed rate cut expectations and market volatility.
• Opportunities are seen in 'boring' sectors like staples and healthcare, as well as selective beaten-down software stocks for a 'tradable bounce'.

Financial market strategist Jay Woods discusses the current market rotation, where tech stocks are 'digesting gains' after years of outperformance, while staples, industrials, energy, and small caps are leading. He advises investors to focus on earnings and look for opportunities in oversold sectors, while maintaining a cautious outlook on the broader market's short-term trajectory.