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
XLY Consumer Discretionary Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLP Consumer Staples Sector SPDR Fund

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

NWSA News Corp
TXN Texas Instruments Inc
HD Home Depot Inc
LOW Lowe's Companies Inc
DIS The Walt Disney Co
XOM Exxon Mobil Corp
APA Apache Corp
MDT Medtronic Inc
NOV National Oilwell Varco Inc
EXC Exelon Corp
CVX Chevron Corp
CL Colgate Palmolive Co
HON Honeywell International Inc
CMCSA Comcast Corp
CVS CVS Caremark Corp
QCOM QUALCOMM Inc
GS Goldman Sachs Group Inc
MMM 3M Company
WMB Williams Companies Inc
KO The Coca Cola Co
GE General Electric Co
PEP Pepsico Inc
JNJ Johnson and Johnson
MSFT Microsoft Corp
UTX United Technologies Corp
CAT Caterpillar Inc
SPG Simon Property Group Inc

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