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
XLI Industrial Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund

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

HON Honeywell International Inc
GS Goldman Sachs Group Inc
IBM International Business Machines Corp
COP ConocoPhillips
XOM Exxon Mobil Corp
AMZN Amazon.com Inc
DOW Dow Chemical Co
NSC Norfolk Southern Corp
MMM 3M Company
GE General Electric Co
BRK.B Berkshire Hathaway Inc
MS Morgan Stanley
TXN Texas Instruments Inc
FCX Freeport-McMoRan Copper & Gold Inc
UNP Union Pacific Corp
C Citigroup Inc
JPM JPMorgan Chase & Co
MA MasterCard Inc
DVN Devon Energy Corp
BK The Bank of New York Mellon Corp
V Visa Inc
DD E I du Pont de Nemours and Co
MCD McDonald's Corporation
APC Anadarko Petroleum Corp
TGT Target Corporation

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.