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

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

BRK.B Berkshire Hathaway Inc
IBM International Business Machines Corp
QCOM QUALCOMM Inc
ACN Accenture PLC
EMR Emerson Electric Co
GS Goldman Sachs Group Inc
NSC Norfolk Southern Corp
GOOG Google Inc
MON Monsanto Co
MS Morgan Stanley
UPS United Parcel Service Inc
CSCO Cisco Systems Inc
MCD McDonald's Corporation
CVX Chevron Corp
GE General Electric Co
UTX United Technologies Corp
SLB Schlumberger Ltd
SBUX Starbucks Corp
NOV National Oilwell Varco Inc
LOW Lowe's Companies Inc
DIS The Walt Disney Co
OXY Occidental Petroleum Corp
TWX Time Warner Inc
GILD Gilead Sciences Inc
V Visa Inc
INTC Intel Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.