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
XLI Industrial Select Sector SPDR Fund
XLF Financial 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).

AEP American Elec Pwr Co Inc
SPG Simon Property Group Inc
UTX United Technologies Corp
APA Apache Corp
EMC EMC Corp
SO Southern Co
MMM 3M Company
FDX FedEx Corporation
WAG Walgreens
CVX Chevron Corp
OXY Occidental Petroleum Corp
JPM JPMorgan Chase & Co
HAL Halliburton Co

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