With the wipeout in growth stocks, many investors turned their attention to big-cap and value names, and the trend is expected to continue for months to come.
"We had seen small caps outperform over the last few years, and now we're seeing signs this relationship is reversing," said Ari Wald, technical analyst at Oppenheimer Asset Management. "Every new high since the start of 2013 was met by a high in the Russell 2000, but really for the first time this April was the first time that it didn't happen."
Analysts expect the momentum shakeout to continue in Internet, social media and biotech stocks, despite Monday's higher market and the gains last week in both the Nasdaq and the small-cap Russell.
Momentum names could also attract buying interest Tuesday, after two big names made headlines after the market close Monday. Netflix announced better-than-expected earnings, sending its stock nearly six percent higher after hours. It is still trading about $90 below its 52-week high of $458, reached in early March.
Bio tech merger machine Valeant joined forces with activist investor Bill Ackman in a merger bid for Allergan. Valeant shares rose sharply, as did Allergan. That could stir up interest in the sector Tuesday.