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).

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

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

HON Honeywell International Inc
GE General Electric Co
BK The Bank of New York Mellon Corp
CVX Chevron Corp
UNP Union Pacific Corp
EBAY eBay Inc
V Visa Inc
MDT Medtronic Inc
LLY Eli Lilly and Co
UPS United Parcel Service Inc
NOV National Oilwell Varco Inc
AAPL Apple Inc
HAL Halliburton Co
BHI Baker Hughes Inc
APC Anadarko Petroleum Corp
EMR Emerson Electric Co
SLB Schlumberger Ltd
MA MasterCard Inc
WMB Williams Companies Inc
NWSA News Corp
BAX Baxter International Inc
CSCO Cisco Systems Inc
QCOM QUALCOMM Inc
NKE Nike Inc
MON Monsanto Co
COST Costco Wholesale Corporation
ORCL Oracle Corporation
ALL Allstate Corp

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.