If the stock market can move sectors and stocks, which sectors and stocks are most likely to move in step with the stock market? Sectors and individual stocks most highly correlated to the overall market can use the S&P 500 SPDR ETF (SPY) as a directional indicator.

The following sectors are most correlated the S&P 500 SPDR ETF (SPY).

XLK S&P Sel Technology Spdr Fund
XLF S&P Sel Financial Spdr Fund
XLB S&P Sel Materials Spdr Fund
XLI S&P Sel Industrial Spdr Fund
XLY S&P Sel Consumer Discretionary Spdr Fund

The following individual stocks are most correlated the S&P 500 SPDR ETF (SPY).

ACN Accenture PLC (Ireland) NEW
USB U.S. Bancorp
ORCL Oracle Corp
UNP Union Pacific Corporation
UPS United Parcel'B'
AXP American Express Company
FCX Freeport-McMoRan Copper&Gold B
GOOG Google Inc Cl A
GD General Dynamics Corp
NWSA News Corp Ltd Pfd 'A' ADS
C Citigroup Inc
COP ConocoPhillips
JPM JPMorgan Chase & Co
JNJ Johnson & Johnson
INTC Intel Corp
RTN Raytheon Co
COF Capital One Financial
UTX United Technologies
CL Colgate-Palmolive
T AT&T Inc
BRK.B Berkshire Hathaway'B'
DOW Dow Chemical
LMT Lockheed Martin
CAT Caterpillar Inc
MDT Medtronic, Inc
EMC EMC Corp

Dave Mecklenburg is the Editor-in-Chief of TigerSharkTrading.com.