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).

XLY Consumer Discretionary Sector SPDR Fund
XLF Financial Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund

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

MMM 3M Company
DD E I du Pont de Nemours and Co
QCOM QUALCOMM Inc
AXP American Express Co
HON Honeywell International Inc
NWSA News Corp
WFC Wells Fargo & Company
NKE Nike Inc

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