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).

XLF Financial Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLB Materials Select Sector SPDR Fund
XLE Energy Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund

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

ACN Accenture PLC
APC Anadarko Petroleum Corp
COP ConocoPhillips
GS Goldman Sachs Group Inc
GE General Electric Co
UTX United Technologies Corp
JNJ Johnson and Johnson
LMT Lockheed Martin Corp
DOW Dow Chemical Co
DVN Devon Energy Corp
MMM 3M Company
SLB Schlumberger Ltd
CVX Chevron Corp
APA Apache Corp
SPG Simon Property Group Inc
BRK.B Berkshire Hathaway Inc
COST Costco Wholesale Corporation
FDX FedEx Corporation

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.