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
XLY Consumer Discretionary Sector SPDR Fund

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

MMM 3M Company
SLB Schlumberger Ltd
BHI Baker Hughes Inc
JPM JPMorgan Chase & Co
C Citigroup Inc
BK The Bank of New York Mellon Corp
NOV National Oilwell Varco Inc
DOW Dow Chemical Co
MS Morgan Stanley
MET MetLife Inc
GE General Electric Co
HAL Halliburton Co
XOM Exxon Mobil Corp
UTX United Technologies Corp
TWX Time Warner Inc
EMR Emerson Electric Co
F Ford Motor Co
NSC Norfolk Southern Corp
AAPL Apple Inc
DIS The Walt Disney Co
WMB Williams Companies Inc
CAT Caterpillar Inc
DVN Devon Energy Corp
WAG Walgreens
COP ConocoPhillips
CVS CVS Caremark Corp
FCX Freeport-McMoRan Copper & Gold Inc
CVX Chevron Corp
COF Capital One Financial Corp
GOOG Google Inc
PFE Pfizer Inc
USB US Bancorp
MDT Medtronic Inc
CMCSA Comcast Corp
UNH UnitedHealth Group Inc

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