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).

XLI Industrial Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund

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

C Citigroup Inc
MS Morgan Stanley
QCOM QUALCOMM Inc
LLY Eli Lilly and Co
EBAY eBay Inc
CMCSA Comcast Corp
EMC EMC Corp

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