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).

XLY Consumer Discretionary Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLB Materials Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund

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

BRK.B Berkshire Hathaway Inc
MET MetLife Inc
JPM JPMorgan Chase & Co
TWX Time Warner Inc
XOM Exxon Mobil Corp
MDT Medtronic Inc
CMCSA Comcast Corp
TXN Texas Instruments Inc
V Visa Inc
NWSA News Corp
SPG Simon Property Group Inc
DIS The Walt Disney Co
GILD Gilead Sciences Inc
ACN Accenture PLC
MA MasterCard Inc
TGT Target Corporation
F Ford Motor Co
BK The Bank of New York Mellon Corp
C Citigroup Inc
OXY Occidental Petroleum Corp
T AT&T Inc
PEP Pepsico Inc
GE General Electric Co
ABT Abbott Laboratories
INTC Intel Corp
MON Monsanto Co
HAL Halliburton Co
LOW Lowe's Companies Inc
NKE Nike Inc
SLB Schlumberger Ltd
QCOM QUALCOMM Inc
HD Home Depot Inc

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