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
XLV Health Care Select 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).

XOM Exxon Mobil Corp
SLB Schlumberger Ltd
MO Altria Group Inc
CSCO Cisco Systems Inc
CVX Chevron Corp
OXY Occidental Petroleum Corp
QCOM QUALCOMM Inc
UTX United Technologies Corp
BHI Baker Hughes Inc
ORCL Oracle Corporation
EMC EMC Corp
PG Procter & Gamble Co
ALL Allstate Corp
WFC Wells Fargo & Company
GOOG Google Inc
GE General Electric Co
BK The Bank of New York Mellon Corp
PEP Pepsico Inc
MET MetLife Inc
EMR Emerson Electric Co
SO Southern Co
DIS The Walt Disney Co
COP ConocoPhillips

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