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).

XLB Materials Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund

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

FCX Freeport-McMoRan Copper & Gold Inc
EMR Emerson Electric Co
COP ConocoPhillips
SPG Simon Property Group Inc
PFE Pfizer Inc
WMB Williams Companies Inc
XOM Exxon Mobil Corp
WFC Wells Fargo & Company
CMCSA Comcast Corp
FDX FedEx Corporation
BK The Bank of New York Mellon Corp
CAT Caterpillar Inc
HON Honeywell International Inc
DOW Dow Chemical Co
DD E I du Pont de Nemours and Co
EMC EMC Corp
BHI Baker Hughes Inc
TWX Time Warner Inc

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