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
XLE Energy Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund

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

DIS The Walt Disney Co
F Ford Motor Co
AXP American Express Co
CVS CVS Caremark Corp
MA MasterCard Inc
FCX Freeport-McMoRan Copper & Gold Inc
WFC Wells Fargo & Company
CAT Caterpillar Inc

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