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).

XLV Health Care 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).

JNJ Johnson and Johnson
BRK.B Berkshire Hathaway Inc
UPS United Parcel Service Inc
AXP American Express Co
EMR Emerson Electric Co
MMM 3M Company
UTX United Technologies Corp
COST Costco Wholesale Corporation
IBM International Business Machines Corp
PG Procter & Gamble Co

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.