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).

XLV Health Care Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLE Energy Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLB Materials Select Sector SPDR Fund
XLP Consumer Staples Sector SPDR Fund

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

MMM 3M Company
GOOG Google Inc
SLB Schlumberger Ltd
CVX Chevron Corp
LLY Eli Lilly and Co
TXN Texas Instruments Inc
BRK.B Berkshire Hathaway Inc
MSFT Microsoft Corp
SBUX Starbucks Corp
MET MetLife Inc
DOW Dow Chemical Co
EBAY eBay Inc
AMZN Amazon.com Inc
HON Honeywell International Inc
ALL Allstate Corp
DD E I du Pont de Nemours and Co
COST Costco Wholesale Corporation
PFE Pfizer Inc
T AT&T Inc
CVS CVS Caremark Corp
C Citigroup Inc
LMT Lockheed Martin Corp
MA MasterCard Inc

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