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).

XLE Energy Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund
XLK Technology Select Sector SPDR Fund

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

XOM Exxon Mobil Corp
COF Capital One Financial Corp
BRK.B Berkshire Hathaway Inc
USB US Bancorp
MMM 3M Company
MDT Medtronic Inc
DOW Dow Chemical Co
KO The Coca Cola Co
MON Monsanto Co
CVS CVS Caremark Corp
DD E I du Pont de Nemours and Co

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