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).

XLI Industrial Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLB Materials Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund
XLE Energy Select Sector SPDR Fund

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

C Citigroup Inc
EMR Emerson Electric Co
MET MetLife Inc
WMB Williams Companies Inc
LMT Lockheed Martin Corp
HON Honeywell International Inc
EXC Exelon Corp
COP ConocoPhillips
WFC Wells Fargo & Company
BRK.B Berkshire Hathaway Inc
HAL Halliburton Co
ACN Accenture PLC
BK The Bank of New York Mellon Corp
BA The Boeing Co
DD E I du Pont de Nemours and Co
EMC EMC Corp
LOW Lowe's Companies Inc
NWSA News Corp
TXN Texas Instruments Inc
ALL Allstate Corp
DOW Dow Chemical Co
F Ford Motor Co
MON Monsanto Co
GILD Gilead Sciences Inc

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