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
XLP Consumer Staples Sector SPDR Fund

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

GILD Gilead Sciences Inc
CVX Chevron Corp
MMM 3M Company
APA Apache Corp
T AT&T Inc
OXY Occidental Petroleum Corp
AMGN Amgen Inc
COP ConocoPhillips
MO Altria Group Inc
CL Colgate Palmolive Co
HON Honeywell International Inc
FCX Freeport-McMoRan Copper & Gold Inc
CAT Caterpillar Inc

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