Lycoming has a Service Instruction discussing overspeeds -- I'm sure Continental has a similar one. An overspeed in the 100-150 RPM range is about a 5% overspeed, which is where the Lycoming SI starts calling for a number of checks. See if you can get the Continental SI for more guidance.
That said, it is not unexpected to see the RPM run past redline at full throttle in level flight with a fixed pitch prop, especially at lower altitudes. That's because of the balance between cruise and climb performance. As you probably know, in climb, there's a lot more drag load on the prop, so the RPM's stay down well below redline at normal climb speeds. OTOH, when you accelerate to cruise speed, the drag load is reduced and RPM's climb. Of course, you probably don't want to cruise at 100% power anyway, so the prop is designed to give an RPM below redline at normal cruise power (typically 65-75%).
The other side of this is you should not see anything near redline at normal climb speed. If the tach was showing 100-150 RPM above redline in climb, either the engine is putting out an astonishing amount of power (way beyond rated power) or the tach has gone bonkers.
So, if you saw this in level flight, it's expected, and your response should be to pull back to appropriate cruise RPM (see your owner's manual performance charts). OTOH, if it happened at climb speed, I think I'd start by checking the tach for accuracy, because it shouldn't be possible to turn that much RPM in a climb.