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).

XLV Health Care Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund

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

GD General Dynamics Corp
EBAY eBay Inc
MSFT Microsoft Corp
XOM Exxon Mobil Corp
DIS The Walt Disney Co
UNH UnitedHealth Group Inc
AAPL Apple Inc
MMM 3M Company
NKE Nike Inc

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