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
XLP Consumer Staples Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund

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

WMB Williams Companies Inc
LLY Eli Lilly and Co
GE General Electric Co
XOM Exxon Mobil Corp
PFE Pfizer Inc
PG Procter & Gamble Co
WAG Walgreens
AMZN Amazon.com Inc
CMCSA Comcast Corp
PM Philip Morris International Inc
BMY Bristol-Myers Squibb Company
ACN Accenture PLC
CVS CVS Caremark Corp

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