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
XLE Energy 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
COP ConocoPhillips
AMZN Amazon.com Inc
TGT Target Corporation
CVX Chevron Corp
COST Costco Wholesale Corporation
GS Goldman Sachs Group Inc
F Ford Motor Co
MON Monsanto Co
WMB Williams Companies Inc
COF Capital One Financial Corp
GD General Dynamics Corp
NOV National Oilwell Varco Inc
OXY Occidental Petroleum Corp
BRK.B Berkshire Hathaway Inc
KO The Coca Cola Co
DD E I du Pont de Nemours and Co
SLB Schlumberger Ltd
LLY Eli Lilly and Co
AAPL Apple Inc
MMM 3M Company
BHI Baker Hughes Inc
FCX Freeport-McMoRan Copper & Gold Inc
DVN Devon Energy Corp
C Citigroup Inc 

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