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
XLK Technology Select Sector SPDR Fund
XLP Consumer Staples Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund

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

UTX United Technologies Corp
INTC Intel Corp
BK The Bank of New York Mellon Corp
TWX Time Warner Inc
COP ConocoPhillips
CVX Chevron Corp
MMM 3M Company
AMZN Amazon.com Inc
GILD Gilead Sciences Inc
MRK Merck & Co Inc
C Citigroup Inc
TXN Texas Instruments Inc
MSFT Microsoft Corp
F Ford Motor Co
BRK.B Berkshire Hathaway Inc
QCOM QUALCOMM Inc
EMR Emerson Electric Co
DIS The Walt Disney Co
EBAY eBay Inc
USB US Bancorp
HAL Halliburton Co
GE General Electric Co
SLB Schlumberger Ltd
KO The Coca Cola Co
BHI Baker Hughes Inc
HD Home Depot Inc
ABT Abbott Laboratories
LLY Eli Lilly and Co
PEP Pepsico Inc
UPS United Parcel Service Inc
CL Colgate Palmolive Co
PFE Pfizer Inc
UNP Union Pacific Corp
EXC Exelon Corp
CSCO Cisco Systems Inc
DVN Devon Energy Corp
CAT Caterpillar Inc
HON Honeywell International Inc
AAPL Apple Inc
AMGN Amgen Inc
NOV National Oilwell Varco Inc
PG Procter & Gamble Co
MDT Medtronic Inc

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.