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
XLU Utilities Select Sector SPDR Fund
XLE Energy Select Sector SPDR Fund

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

QCOM QUALCOMM Inc
INTC Intel Corp
MO Altria Group Inc
PFE Pfizer Inc
GD General Dynamics Corp
MMM 3M Company
TXN Texas Instruments Inc
AXP American Express Co
UPS United Parcel Service Inc
ABT Abbott Laboratories
JNJ Johnson and Johnson
HPQ Hewlett-Packard Co

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