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).

XLK Technology Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund

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

MET MetLife Inc
ACN Accenture PLC
ALL Allstate Corp
CMCSA Comcast Corp
UPS United Parcel Service Inc
GS Goldman Sachs Group Inc
MA MasterCard Inc
V Visa Inc
CL Colgate Palmolive Co
AMZN Amazon.com Inc
MON Monsanto Co

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