Pension-fund rebalancing and other red flags that suggest a stock-market pullback is nearing, according to Goldman Sachs

Goldman Sachs warns a near-term pullback in the S&P 500 is likely, citing several red flags: hedge funds are degrossing positions, April month-end pension rebalancing could prompt more than $25 billion of U.S. equity sales, CTAs have stopped buying the S&P after a recent buying spree, market breadth is narrowing and investor positioning looks stretched. Despite the risks, Goldman advises using any pullback to buy and expects the S&P 500 to finish the year significantly higher. The report comes as roughly 44% of the index is due to report earnings this week, including major tech names, which could amplify volatility.