"I don't think it's over. If you look at some of the valuations of the sub sectors, they are 25 to 40 percent overvalued," said David Cassese, a director and portfolio manager with BlackRock's Alpha Strategies group. He focuses on consumer, health care and technology sectors.
Read MoreInvestors scared to death of stocks. Bullish sign?
Cassese likes big-cap names—Merck, Bristol-Myers and Pfizer in health care, and Microsoft, Intel, Qualcomm and Motorola Solutions are among his tech holdings.
Some analysts expect earnings of big caps, especially those with lower price-to-earnings ratios, to get a boost during reporting season this quarter. Stocks like Coca-Cola and General Electric, for example, both rose after reporting slightly better-than-expected earnings.
Earnings due Tuesday morning include McDonald's, AT&T, United Tech, Travelers, Lockheed Martin, Bank of NY Mellon, Xerox, Illinois Tool Works, AK Steel, Canadian Pacific Railway, and Comcast (CNBC's parent company). Amgen, Gilead Sciences, Juniper Networks, VMWare, Yum Brands and Cree report after the close.
Cassese said many earnings reports this quarter are going to be distorted by weather-related factors. "People are going to look through a lot of it," he said.
Analysts are fairly positive on the broader market, despite expectations that the shakeout will continue in smaller-cap and momentum stocks. The IBB iShares Nasdaq Biotech ETF was trading higher Monday at 226, but it is still below its February high of 275, and SOCL, the Global X Social Media ETF was at 18.90 Monday, well below its March high of just under 23.
"If you expect growth to pick up a little bit, and that we're not at the end of the cycle and this has a few years to play out, it makes sense to be in more economically sensitive stocks that have lower P/Es and are more sensitive to an improving economy," said Scott Wren, Wells Fargo Advisors senior equity strategist.
Read MoreNeed growth? Sell everything and buy this: Cramer
Wren said he had been hoping for a bigger pullback in the S&P—to the 200-day moving average at about 1,770. That would have provided a good entry point, but he also would add a smaller amount to equity holdings at current levels.
"The momentum situation had gotten out of hand," he said. "One of the ways to make sure you don't make your financial goals is to be loaded up on home run stocks." Wren said one of the warnings that the momentum shakeout was coming was the fact that so many IPOs were coming to market for companies that had no earnings.
Before last week's bounce back, the Nasdaq and Russell were both nearly 10 percent off their highs, close to official correction territory.
Read MoreThese stocks are leading the five-day rally
Wald says any bounce in the Russell 2000 now is worth selling, and it is hovering near support at its 200-day moving average. "We are seeing some of these late-cycle conditions develop and at this point, I believe the strength is with big-cap stocks," he said.