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
XLV Health Care Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLB Materials Select Sector SPDR Fund

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

MMM 3M Company
SLB Schlumberger Ltd
JPM JPMorgan Chase & Co
NSC Norfolk Southern Corp
SPG Simon Property Group Inc
GOOG Google Inc
HAL Halliburton Co
CVX Chevron Corp
BRK.B Berkshire Hathaway Inc
NOV National Oilwell Varco Inc
UPS United Parcel Service Inc
MRK Merck & Co Inc
MSFT Microsoft Corp
XOM Exxon Mobil Corp
FDX FedEx Corporation
DOW Dow Chemical Co
UTX United Technologies Corp
TWX Time Warner Inc
MET MetLife Inc
LMT Lockheed Martin Corp
HON Honeywell International Inc
CSCO Cisco Systems Inc
BMY Bristol-Myers Squibb Company
V Visa Inc
BHI Baker Hughes Inc
COST Costco Wholesale Corporation
IBM International Business Machines Corp
DIS The Walt Disney Co
GE General Electric Co
COP ConocoPhillips
GS Goldman Sachs Group Inc

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