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).

XLE Energy Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund
XLP Consumer Staples Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLU Utilities Select Sector SPDR Fund

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

QCOM QUALCOMM Inc
XOM Exxon Mobil Corp
AXP American Express Co
BRK.B Berkshire Hathaway Inc
BMY Bristol-Myers Squibb Company
TXN Texas Instruments Inc
RTN Raytheon Co
MDT Medtronic Inc
AEP American Elec Pwr Co Inc
SLB Schlumberger Ltd
BA The Boeing Co
BHI Baker Hughes Inc
GD General Dynamics Corp
BAX Baxter International Inc
UPS United Parcel Service Inc
HON Honeywell International Inc
LMT Lockheed Martin Corp
NWSA News Corp
APC Anadarko Petroleum Corp
INTC Intel Corp
NOV National Oilwell Varco Inc

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