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
XLY Consumer Discretionary 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
CVX Chevron Corp
NOV National Oilwell Varco Inc
SLB Schlumberger Ltd
UPS United Parcel Service Inc
UTX United Technologies Corp
FDX FedEx Corporation
HAL Halliburton Co
GD General Dynamics Corp
OXY Occidental Petroleum Corp
JPM JPMorgan Chase & Co
APC Anadarko Petroleum Corp
F Ford Motor Co
RTN Raytheon Co
UNP Union Pacific Corp
DVN Devon Energy Corp
EBAY eBay Inc
V Visa Inc
COP ConocoPhillips
AAPL Apple Inc
CSCO Cisco Systems Inc
MDT Medtronic Inc
ORCL Oracle Corporation
T AT&T Inc
GS Goldman Sachs Group Inc
BMY Bristol-Myers Squibb Company
NSC Norfolk Southern Corp
WFC Wells Fargo & Company
BAC Bank of America Corp
MRK Merck & Co Inc
BRK.B Berkshire Hathaway Inc

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.