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
XLK Technology Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund

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

MMM 3M Company
JPM JPMorgan Chase & Co
MSFT Microsoft Corp
OXY Occidental Petroleum Corp
HD Home Depot Inc
BHI Baker Hughes Inc
SLB Schlumberger Ltd
UTX United Technologies Corp
DOW Dow Chemical Co
APC Anadarko Petroleum Corp
BK The Bank of New York Mellon Corp
SPG Simon Property Group Inc
GS Goldman Sachs Group Inc
C Citigroup Inc
EBAY eBay Inc
NOV National Oilwell Varco Inc
FDX FedEx Corporation
MS Morgan Stanley
GE General Electric Co
INTC Intel Corp
HAL Halliburton Co
MET MetLife Inc
AAPL Apple Inc
ORCL Oracle Corporation
UPS United Parcel Service Inc
COST Costco Wholesale Corporation
UNP Union Pacific Corp
ABT Abbott Laboratories
SBUX Starbucks Corp
IBM International Business Machines Corp
COP ConocoPhillips
BMY Bristol-Myers Squibb Company

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