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).

XLF Financial Select Sector SPDR Fund
XLE Energy Select Sector SPDR Fund
XLI Industrial Select 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).

EMR Emerson Electric Co
BRK.B Berkshire Hathaway Inc
NSC Norfolk Southern Corp
UTX United Technologies Corp
XOM Exxon Mobil Corp
OXY Occidental Petroleum Corp
WAG Walgreens
EMC EMC Corp
DD E I du Pont de Nemours and Co
COP ConocoPhillips
GOOG Google Inc
CVX Chevron Corp

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