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).

XLV Health Care Select Sector SPDR Fund
XLE Energy Select Sector SPDR Fund
XLU Utilities Select Sector SPDR Fund
XLP Consumer Staples Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund

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

SO Southern Co
SLB Schlumberger Ltd
JNJ Johnson and Johnson
GILD Gilead Sciences Inc
APA Apache Corp
MMM 3M Company
NSC Norfolk Southern Corp
CVX Chevron Corp
OXY Occidental Petroleum Corp
MRK Merck & Co Inc
COP ConocoPhillips
PG Procter & Gamble Co
EXC Exelon Corp
HAL Halliburton Co
PEP Pepsico Inc
BMY Bristol-Myers Squibb Company
MCD McDonald's Corporation
T AT&T Inc
CL Colgate Palmolive Co
ORCL Oracle Corporation
PFE Pfizer Inc
USB US Bancorp
BK The Bank of New York Mellon Corp
LLY Eli Lilly and Co
HON Honeywell International Inc
DVN Devon Energy Corp
ABT Abbott Laboratories

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