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
XLE Energy Select Sector SPDR Fund
XLU Utilities Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund

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

SBUX Starbucks Corp
DVN Devon Energy Corp
APA Apache Corp
BK The Bank of New York Mellon Corp
GS Goldman Sachs Group Inc
ACN Accenture PLC
IBM International Business Machines Corp
MSFT Microsoft Corp
DD E I du Pont de Nemours and Co
SLB Schlumberger Ltd
MON Monsanto Co
CVX Chevron Corp
OXY Occidental Petroleum Corp
NSC Norfolk Southern Corp
NKE Nike Inc
COF Capital One Financial Corp
T AT&T Inc
MO Altria Group Inc
APC Anadarko Petroleum Corp
COP ConocoPhillips
AAPL Apple Inc
WFC Wells Fargo & Company

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.