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).

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

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

HD Home Depot Inc
NOV National Oilwell Varco Inc
GS Goldman Sachs Group Inc
IBM International Business Machines Corp
QCOM QUALCOMM Inc
COP ConocoPhillips
HON Honeywell International Inc
EMR Emerson Electric Co
XOM Exxon Mobil Corp
MS Morgan Stanley
AMZN Amazon.com Inc
MMM 3M Company
CVX Chevron Corp
UTX United Technologies Corp
BA The Boeing Co
LOW Lowe's Companies Inc
F Ford Motor Co
WAG Walgreens
ACN Accenture PLC
LMT Lockheed Martin Corp
DOW Dow Chemical Co
UNP Union Pacific Corp
OXY Occidental Petroleum Corp
APC Anadarko Petroleum Corp
HAL Halliburton Co
BRK.B Berkshire Hathaway Inc
AXP American Express Co
V Visa Inc
LLY Eli Lilly and Co
C Citigroup Inc
BHI Baker Hughes Inc
GILD Gilead Sciences Inc
JPM JPMorgan Chase & Co
NKE Nike Inc
GE General Electric Co
CVS CVS Caremark Corp
SBUX Starbucks Corp
TWX Time Warner Inc
BAC Bank of America Corp
CAT Caterpillar Inc
WMB Williams Companies Inc
AAPL Apple Inc
MCD McDonald's Corporation
RTN Raytheon Co
PM Philip Morris International Inc
AEP American Elec Pwr Co Inc
ABT Abbott Laboratories
SPG Simon Property Group Inc
GD General Dynamics Corp
T AT&T Inc
SLB Schlumberger Ltd
TGT Target Corporation
APA Apache Corp
GOOG Google Inc
MON Monsanto Co
MA MasterCard Inc
EMC EMC Corp
ORCL Oracle Corporation
ALL Allstate Corp
NWSA News Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.