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
XLB Materials Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund

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

MMM 3M Company
NSC Norfolk Southern Corp
UTX United Technologies Corp
UNP Union Pacific Corp
CVX Chevron Corp
HAL Halliburton Co
FDX FedEx Corporation
TWX Time Warner Inc
DIS The Walt Disney Co
AMZN Amazon.com Inc
COST Costco Wholesale Corporation
PFE Pfizer Inc
BMY Bristol-Myers Squibb Company
MET MetLife Inc
SBUX Starbucks Corp
MON Monsanto Co

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