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
XLU Utilities Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund

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

CMCSA Comcast Corp
WFC Wells Fargo & Company
GOOG Google Inc
MO Altria Group Inc
UTX United Technologies Corp
GE General Electric Co
BRK.B Berkshire Hathaway Inc
MDT Medtronic Inc
MMM 3M Company
PEP Pepsico Inc
TWX Time Warner Inc
NWSA News Corp
V Visa Inc
EMR Emerson Electric Co
SBUX Starbucks Corp
MCD McDonald's Corporation
BMY Bristol-Myers Squibb Company
CAT Caterpillar Inc
MA MasterCard Inc
GD General Dynamics Corp
VZ Verizon Communications Inc
AAPL Apple Inc
UNP Union Pacific Corp
HON Honeywell International Inc

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