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
XLF Financial Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund

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

BAC Bank of America Corp
C Citigroup Inc
COP ConocoPhillips
JPM JPMorgan Chase & Co
COF Capital One Financial Corp
UTX United Technologies Corp
NOV National Oilwell Varco Inc
MET MetLife Inc
EMR Emerson Electric Co
HON Honeywell International Inc
NKE Nike Inc
HAL Halliburton Co
MMM 3M Company
BRK.B Berkshire Hathaway Inc
AXP American Express Co
UNP Union Pacific Corp
XOM Exxon Mobil Corp
BHI Baker Hughes Inc
HD Home Depot Inc
CVX Chevron Corp
GD General Dynamics Corp
LMT Lockheed Martin Corp
GE General Electric Co
NWSA News Corp
ABT Abbott Laboratories
LLY Eli Lilly and Co

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.