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
XLK Technology Select Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLB Materials Select Sector SPDR Fund
XLP Consumer Staples Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund

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

WFC Wells Fargo & Company
ORCL Oracle Corporation
AMZN Amazon.com Inc
USB US Bancorp
BRK.B Berkshire Hathaway Inc
DD E I du Pont de Nemours and Co
JPM JPMorgan Chase & Co
KO The Coca Cola Co

Dave Mecklenburg is the Editor-in-Chief of TigerSharkTrading.com.