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
XLU Utilities Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund

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

XOM Exxon Mobil Corp
GE General Electric Co
NWSA News Corp
TXN Texas Instruments Inc
WAG Walgreens
APA Apache Corp
JPM JPMorgan Chase & Co
SLB Schlumberger Ltd

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