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
XLF Financial Select Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLB Materials Select Sector SPDR Fund

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

XOM Exxon Mobil Corp
CVX Chevron Corp
SLB Schlumberger Ltd
TGT Target Corporation
EMR Emerson Electric Co
JPM JPMorgan Chase & Co
MMM 3M Company
DD E I du Pont de Nemours and Co
MET MetLife Inc
UTX United Technologies Corp
BAC Bank of America Corp
DOW Dow Chemical Co
PFE Pfizer Inc
LMT Lockheed Martin Corp
GOOG Google Inc
RTN Raytheon Co
HAL Halliburton Co
GS Goldman Sachs Group Inc
AMZN Amazon.com Inc
MDT Medtronic Inc
WFC Wells Fargo & Company
C Citigroup Inc
DVN Devon Energy Corp
BAX Baxter International Inc
MON Monsanto Co
GILD Gilead Sciences Inc
EBAY eBay Inc
EMC EMC Corp
NSC Norfolk Southern Corp
LOW Lowe's Companies Inc
MS Morgan Stanley
CAT Caterpillar Inc
F Ford Motor Co

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.