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).

XLF Financial Select Sector SPDR Fund
XLE Energy Select Sector SPDR Fund
XLK Technology Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund

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

JNJ Johnson and Johnson
XOM Exxon Mobil Corp
ALL Allstate Corp
BRK.B Berkshire Hathaway Inc
CVX Chevron Corp
SLB Schlumberger Ltd
JPM JPMorgan Chase & Co
USB US Bancorp
GOOG Google Inc
UNP Union Pacific Corp
TGT Target Corporation
AXP American Express Co
UTX United Technologies Corp
V Visa Inc
MDT Medtronic Inc
MET MetLife Inc
MA MasterCard Inc

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.