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
XLI Industrial Select Sector SPDR Fund
XLV Health Care 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
WFC Wells Fargo & Company
COP ConocoPhillips
USB US Bancorp
GS Goldman Sachs Group Inc
MDT Medtronic Inc
NOV National Oilwell Varco Inc
JPM JPMorgan Chase & Co
MET MetLife Inc
MRK Merck & Co Inc
EMC EMC Corp
BRK.B Berkshire Hathaway Inc
DD E I du Pont de Nemours and Co
UTX United Technologies Corp
AMZN Amazon.com Inc
UNH UnitedHealth Group Inc
HD Home Depot Inc
OXY Occidental Petroleum Corp
BHI Baker Hughes Inc
APA Apache Corp
EBAY eBay Inc
HON Honeywell International Inc
KO The Coca Cola Co
HAL Halliburton Co

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