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

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

RTN Raytheon Co
EBAY eBay Inc
NWSA News Corp
CMCSA Comcast Corp
DIS The Walt Disney Co
USB US Bancorp
V Visa Inc
MMM 3M Company

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