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

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

UTX United Technologies Corp
MA MasterCard Inc
MMM 3M Company
CMCSA Comcast Corp
JNJ Johnson and Johnson

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