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).

XLF Financial Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund
XLU Utilities Select Sector SPDR Fund

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

PFE Pfizer Inc
ALL Allstate Corp
AXP American Express Co
FDX FedEx Corporation
SBUX Starbucks Corp
INTC Intel Corp
MET MetLife Inc
TWX Time Warner Inc
MON Monsanto Co
UNP Union Pacific Corp
UPS United Parcel Service Inc
WMT Wal-Mart Stores Inc
GE General Electric Co
F Ford Motor Co
DIS The Walt Disney Co
SPG Simon Property Group Inc
EMC EMC Corp
AMGN Amgen Inc
SO Southern Co
MMM 3M Company
HPQ Hewlett-Packard Co

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