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
XLY Consumer Discretionary Sector SPDR Fund
XLB Materials Select Sector SPDR Fund
XLU Utilities Select Sector SPDR Fund
XLE Energy Select Sector SPDR Fund

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

FDX FedEx Corporation
EMR Emerson Electric Co
UNP Union Pacific Corp
COP ConocoPhillips
V Visa Inc
SLB Schlumberger Ltd
HPQ Hewlett-Packard Co
SO Southern Co
AMZN Amazon.com Inc
FCX Freeport-McMoRan Copper & Gold Inc
XOM Exxon Mobil Corp
IBM International Business Machines Corp
SPG Simon Property Group Inc
HON Honeywell International Inc
OXY Occidental Petroleum Corp
LMT Lockheed Martin Corp

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