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
XLI Industrial Select Sector SPDR Fund
XLP Consumer Staples Sector SPDR Fund
XLE Energy Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund

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

SLB Schlumberger Ltd
MO Altria Group Inc
XOM Exxon Mobil Corp
CSCO Cisco Systems Inc
QCOM QUALCOMM Inc
WFC Wells Fargo & Company
PG Procter & Gamble Co
MDT Medtronic Inc
CVX Chevron Corp
BHI Baker Hughes Inc
SBUX Starbucks Corp
EMC EMC Corp
GOOG Google Inc
T AT&T Inc
TXN Texas Instruments Inc
CAT Caterpillar Inc
PEP Pepsico Inc
IBM International Business Machines Corp
OXY Occidental Petroleum Corp
MSFT Microsoft Corp
INTC Intel Corp
EMR Emerson Electric Co
GE General Electric Co
DVN Devon Energy Corp
PM Philip Morris International Inc
TWX Time Warner Inc
BRK.B Berkshire Hathaway Inc

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