Market reversal a 'warning shot across the bow'

  • The market's wild ride on Tuesday doesn't necessarily mean it's all downhill from here, but it could be a signal for investors to make some changes, Aviance Capital Management's Chris Bertelsen said.
  • On Tuesday, the Dow Jones had its biggest one-day reversal since Feb. 10, 2016.
  • "It's time to look a little more defensively … and start moving away from technology and some of the other names that have had huge runs here," Bertelsen said.

The market's wild ride on Tuesday doesn't necessarily mean it's all downhill from here, but it could be a signal for investors to make some changes, Chris Bertelsen of Aviance Capital Management told CNBC on Tuesday.

The Dow Jones industrial average traded above 26,000 for the first time on Tuesday before giving up its 283-point gain to close lower. It was the blue-chip index's biggest one-day reversal since Feb. 10, 2016.

"It's a warning shot across the bow," Aviance's president and chief investment officer said in an interview with "Closing Bell."

"It's time to look a little more defensively … and start moving away from technology and some of the other names that have had huge runs here."

He said he expects the market to rise only 3 to 4 percent by the end of the year.

In fact, the S&P 500 has been rising so quickly, it has already topped or matched about a third of Wall Street analysts' year-end 2018 targets, collected by CNBC.

Kenny Polcari, director at O'Neill Securities, told "Closing Bell" he thinks the market is exhausted.

"It's overdone. I think the momentum has taken it so far out of line that it needs to come back," he said. "It's actually healthy for the market to pull back a little bit to give [it] a chance to calm down."

— CNBC's Patti Domm contributed to this report.