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
XLK Technology Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund

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

CVX Chevron Corp
BHI Baker Hughes Inc
GOOG Google Inc
SLB Schlumberger Ltd
IBM International Business Machines Corp
COF Capital One Financial Corp
XOM Exxon Mobil Corp
EMR Emerson Electric Co
AAPL Apple Inc
HAL Halliburton Co
APC Anadarko Petroleum Corp
MET MetLife Inc
HPQ Hewlett-Packard Co
EBAY eBay Inc

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.