After a promising close Monday, stocks reversed to the downside in late trading on Tuesday. The Dow Transports bucked the trend while the small- and mid-cap stocks were a bit weaker that the S&P 500.

Clearly, many are on the sidelines ahead of Alcoa, Inc.(AA) earnings after the close today. Expectations are very low, so any stocks that beat expectations are likely to be rewarded and weak results may already be factored into many stock prices.

The large-cap stocks, whose earnings have been hurt by the much stronger dollar, are likely to get most of the focus. The iShares Dow Industrials (DIA) is up 0.83% YTD while theSpyder Trust (SPY) has done a bit better gaining 1.29%. Both are lagging well behind the 4.32% gain in the small-cap iShares Russell 2000 (IWM).

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The monthly starc band scan of the stocks in the Dow Industrials shows thatProcter & Gamble (PG) is the most oversold as it closed March just 5.8% above its monthly starc- band.  Of course, this does not mean that PG cannot decline further but it identifies the stock as being in a higher risk sell area.

By looking at the monthly charts, one can often isolate those stocks that are closest to major chart support and those that have technical readings that suggest they could bottom out in the next few months. These four stocks have the most interesting long-term charts.

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Chart Analysis: The monthly chart of Johnson & Johnson (JNJ) is down 3.51% YTD and has a current yield of 2.80%.

• The long-term chart shows that the uptrend, line b, was violated in February as the 20-month EMA was tested; it now stands at $97.71.
• The monthly support for April at $98.08 has already been tested.
• The high from 2012, line 1, and stronger support is now in the $96 area.
• The monthly RS line dropped below its WMA in late 2014 and is still declining.
• The relative performance needs to move above the resistance at line c, to signal it is a market leader.
• The monthly OBV did peak with prices in November and is holding well above its WMA.
• The weekly studies are negative and show no signs yet of bottoming.
• There is key resistance now in the $103.50 area.