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
XLY Consumer Discretionary Sector SPDR Fund
XLE Energy Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLP Consumer Staples Sector SPDR Fund

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

XOM Exxon Mobil Corp
UTX United Technologies Corp
SBUX Starbucks Corp
UPS United Parcel Service Inc
PG Procter & Gamble Co
INTC Intel Corp
AMGN Amgen Inc
BRK.B Berkshire Hathaway Inc
JNJ Johnson and Johnson
AMZN Amazon.com Inc
MMM 3M Company
LOW Lowe's Companies Inc
TXN Texas Instruments Inc
SO Southern Co
COST Costco Wholesale Corporation
GE General Electric Co
V Visa Inc
CSCO Cisco Systems Inc
OXY Occidental Petroleum Corp
IBM International Business Machines Corp
MCD McDonald's Corporation
TWX Time Warner Inc
NOV National Oilwell Varco Inc
AEP American Elec Pwr Co Inc
F Ford Motor Co

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.