Stocks slip on Monday as Dow looks to close out its best month since 1976

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The S&P 500 and Nasdaq Composite are also up for the month, putting Wall Street on track to snap a two-month losing streak.

The economy will experience a "slow erosion not a dramatic implosion," according to Trivariate Research. That makes cheap cyclical stocks attractive.

Parker said energy, metals and homebuilder stocks remain attractive compared to machinery, semiconductors, capital equipment and electronic equipment, even if earnings estimates are cut 30% to 50%. Wilson, who won the best portfolio strategist title in the latest Institutional Investor survey, said the rally can reach a range of 4,000 to 4,150 and he's leaning toward the upper bound. A rally to 4,150 would entail a 6% gain from here. .Five stocks notched fresh lows during Monday's trading session while a slew of energy names traded near all-time highs.

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