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 Technology Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLP Consumer Staples Sector SPDR Fund

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

XOM Exxon Mobil Corp
JPM JPMorgan Chase & Co
AXP American Express Co
LMT Lockheed Martin Corp
COP ConocoPhillips
ORCL Oracle Corporation
DVN Devon Energy Corp
ACN Accenture PLC
UNP Union Pacific Corp
MRK Merck & Co Inc
FDX FedEx Corporation
FCX Freeport-McMoRan Copper & Gold Inc
MO Altria Group Inc
EMC EMC Corp
UNH UnitedHealth Group Inc
UTX United Technologies Corp
KO The Coca Cola Co
COF Capital One Financial Corp
BMY Bristol-Myers Squibb Company
MDT Medtronic Inc
OXY Occidental Petroleum Corp
LLY Eli Lilly and Co
CSCO Cisco Systems Inc
CAT Caterpillar Inc
CVX Chevron Corp
DD E I du Pont de Nemours and Co

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