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).

XLK Technology Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLI Industrial 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).

UTX United Technologies Corp
BA The Boeing Co
CVX Chevron Corp
HAL Halliburton Co
CSCO Cisco Systems Inc
USB US Bancorp
GE General Electric Co
TXN Texas Instruments Inc
GS Goldman Sachs Group Inc
DD E I du Pont de Nemours and Co
DOW Dow Chemical Co
EBAY eBay Inc
HON Honeywell International Inc
F Ford Motor Co
NOV National Oilwell Varco Inc
NWSA News Corp
ACN Accenture PLC

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.