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
XLK Technology Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund
XLB Materials Select Sector SPDR Fund

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

MS Morgan Stanley
UTX United Technologies Corp
BK The Bank of New York Mellon Corp
NWSA News Corp
APC Anadarko Petroleum Corp
SPG Simon Property Group Inc
TWX Time Warner Inc
MSFT Microsoft Corp
ORCL Oracle Corporation
BAX Baxter International Inc
UNP Union Pacific Corp
NOV National Oilwell Varco Inc
HD Home Depot Inc
DOW Dow Chemical Co
INTC Intel Corp
IBM International Business Machines Corp
MMM 3M Company
GE General Electric Co
ABT Abbott Laboratories
CMCSA Comcast Corp
F Ford Motor Co
COST Costco Wholesale Corporation
APA Apache Corp
AXP American Express Co

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