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
XLP Consumer Staples Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLU Utilities Select Sector SPDR Fund

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

MMM 3M Company
EXC Exelon Corp
XOM Exxon Mobil Corp
LOW Lowe's Companies Inc
CVX Chevron Corp
MDT Medtronic Inc
HON Honeywell International Inc
MCD McDonald's Corporation
WMB Williams Companies Inc
EMR Emerson Electric Co
NOV National Oilwell Varco Inc
COP ConocoPhillips
UNH UnitedHealth Group Inc
UTX United Technologies Corp
BHI Baker Hughes Inc
AEP American Elec Pwr Co Inc
FDX FedEx Corporation
HAL Halliburton Co
LMT Lockheed Martin Corp

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