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
XLI Industrial Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund

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

RTN Raytheon Co
NWSA News Corp
CMCSA Comcast Corp
NOV National Oilwell Varco Inc
MMM 3M Company
USB US Bancorp
DVN Devon Energy Corp
V Visa Inc
F Ford Motor Co
COF Capital One Financial Corp
DIS The Walt Disney Co
EXC Exelon Corp
COST Costco Wholesale Corporation
MON Monsanto Co
COP ConocoPhillips
HAL Halliburton Co
APA Apache Corp
CVX Chevron Corp
LLY Eli Lilly and Co
IBM International Business Machines Corp

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